The U.S. has become a nation of side hustlers and freelancers. With an uncertain economy, nearly 50% of Americans engage in side hustles for extra money, and as of this year, 73.3 million freelancers are working in the U.S.
The gig economy, which allows individuals and companies to hire independent workers for short-term projects, is one area of the economy that is still consistently growing.
With gig work on the rise, platforms that seek to connect gig workers and those looking for their services have sprung up. One such platform is the Steady App, which strives to put all gig and flexible work opportunities in one place.
Read on to learn about the Steady App and how to increase your cash flow through Steady gig opportunities.
What is the Steady App?
More than ever, people are looking for flexible ways to make money outside their nine-to-fives, and Steady has sought to fill that demand with its free mobile app.
Launched in 2018 as a fintech startup backed by NBA legend Shaquille O’Neal, the Steady App consolidates gigs and side hustle opportunities in one easy-to-use app. Users can filter their job search by type depending on availability and flexibility and begin browsing opportunities.
In addition to the free app, Steady members can join the optional Steady premium plan for just $1.99 monthly and access additional benefits. These benefits include income comparisons, access to the highest-paying job listings, financial data recording, and more.
Even though the premium plan costs $1.99 a month, the additional features should help you easily earn more in the long run and thus is likely worth it for serious gig workers and side hustlers.
Ways to Earn Through the Steady App
There are three main ways users can earn money through the Steady App, with the primary mode being through completing jobs.
Jobs
Steady App users can filter their search according to five different job types:
Recently Added
Work from Home
Anytime
Part-Time
Full-Time
As the name suggests, the Recently Added category is for brand-new gigs and opportunities to the app. Also self-explanatory is the Work from Home category, which includes remote customer service, writing, tutoring, and other similar jobs.
The Anytime category is for those looking for flexible jobs you can work whenever you’re available. When searching this category, you’ll take a quick survey to help narrow down options with questions about your desired hours, location, licenses, certifications, etc.
There are also many full- and part-time options for those looking for steadier work opportunities. Examples include local opportunities in caregiving, hospitality, retail, and much more.
Another neat feature of the app is that it will curate jobs it thinks you may be interested in based on the information you’ve fed the app. Simply click on “Jobs for You” to see your personalized recommendations.
Most hourly jobs listed are in the $15 to $25 per hour range.
Grants
For those experiencing financial hardship, the Steady App offers grant opportunities that you can apply for directly in the app. Of course, filling out an application doesn’t guarantee a grant, but Steady reports on its site that it’s paid out $4 million in emergency cash grants to members thus far.
Income Boosters
Finally, there is an Income Boosters section of the Steady App with recommendations for Steady partners offering sign-up bonuses and other cash incentives for trying products or signing up for services. These include bank accounts, loan products, and various services like DoorDash.
How to Get Started with the Steady App
The Steady App is free for iOS and Android users, and it’s easy to get signed up and search for gigs.
Once you’ve downloaded the app, you’ll need to set up your free account using your name, email, and phone number. Then, choose a password, link your bank account, and you’re all set.
Next, you’ll need to complete your profile by answering several questions. These questions help to curate opportunities to your specifications. Questions include:
Type of work you want
Where you want to work
Your highest level of education
Your job experience
Your availability
Your modes of transportation
Once your profile is complete, you can search for thousands of opportunities within the abovementioned categories. In addition to searching within job categories, users can also filter by location, posted date, industry, and pay.
How to Apply for Gigs on the Steady App
Similar to getting started, applying for jobs on the Steady App is also straightforward. Simply hit apply and follow the link to apply or register with the third party offering the job. Once you’ve applied, communication will come from the third party advertising the job listing, not the Steady App.
How Much Can You Make with the Steady App?
How much you earn with the Steady App will depend on which jobs you qualify for and how much you choose to work. However, the average Steady user makes around $5,500 a year in extra income.
Just note that Steady charges a 10% commission on money made through the app.
Who Should Use Steady?
The Steady App is ideal for anyone looking to earn extra money on the side. The app is an excellent option for students, freelancers, teachers, independent contractors, and similar individuals looking for flexible work.
The app is also great for those looking for regular part or full-time income opportunities.
Steady App Reviews
A common question about apps like Steady is whether or not they are legit. Not only is Steady a legitimate platform, but the app also has very positive reviews.
Steady Pros and Cons
As with any product or platform, there are benefits and drawbacks.
Pros
It’s free to sign up and use the app
Quick and easy signup
Easy to filter and find job opportunities that work for you and your situation
Curated job opportunities all in one place
Access to multiple earning opportunities through jobs, income boosts, and grants
You can easily link your bank account for direct deposit of earnings
Easy to manage your income using the income tracker tool
Cons
You will need to continually apply for gigs
You must pay $1.99 a month to access premium features
Pay isn’t always listed
Search filters tend to favor the same types of jobs
No budgeting features to help users manage expenses and overall budget
Other Options
Steady seeks to put all the best gigs and freelance opportunities in one place, along with opportunities for part and full-time jobs. However, Steady isn’t the only place freelancers and gig workers can find these types of jobs.
Here are a few other apps like Steady and a brief overview of each.
TaskRabbit
TaskRabbit is another platform that connects gig workers with opportunities. Called Taskers, the app connects users looking to earn money with individuals who need help completing various tasks.
These tasks could be as simple as running errands or more complicated, like assembling furniture and home repairs. Other common tasks include driving, moving help, and painting.
Taskers set their rates and get paid when they complete the task.
FlexJobs
If you’re looking for remote, flexible job opportunities, then FlexJobs is a great place to look. In business since 2007, FlexJobs is a low-cost subscription service for those looking for high-quality remote work. The jobs advertised include part-time hours, freelance work, and remote or home opportunities. In addition, they verify and screen all job opportunities to ensure they are legitimate.
Aside from finding viable, high-quality jobs, members of FlexJobs also have access to Q&A sessions, webinars, job fairs, skills tests, mock interviews, and resource articles. In addition, subscribers can also access discounted career coaching and resume reviews to enhance their ability to land quality jobs.
FlexJobs offers the choice of a weekly, monthly, quarterly, or yearly subscription, so there is an option that works for almost any job-seeking situation.
Fiverr and Upwork
Fiverr and Upwork are both online marketplaces for freelancers looking for remote gigs. If you have writing, editing, and graphic design skills or can work as a virtual assistant, these sites are a great place to find freelance work. However, these sites operate differently because clients respond to your advertisements rather than you applying for job postings.
Sign up for free, create a profile, list your services, and set your price so potential clients can begin searching and hire you for their jobs.
DoorDash
DoorDash is yet another option for gig workers looking for a flexible schedule. While DoorDash differs in that it doesn’t have as wide a range of job types, there is quite a bit of flexibility.
DoorDash connects food delivery jobs to those willing to deliver the (Dashers). Now available in 5,500 cities, Dashers can deliver their goods by car, on a bike or scooter, or even by walking if close enough. Signing up is simple, and once approved, Dashers can work when they want and can choose to accept or decline jobs that come through the app.
Instacart
Instacart is similar to DoorDash, except, in this case, you’re shopping for and possibly delivering groceries.
There are two types of Instacart shoppers: full-service and in-store shoppers. Full-service shoppers compile the order in the store and deliver the groceries to the customer’s home. In-store shoppers select the items in the store but do not deliver them to the customer. Thus, anyone can be an in-store shopper.
If you love shopping and want a flexible schedule or a side gig, Instacart may be an excellent option.
Rover
Not into shopping or delivery services? There are still some great options for flexible side gigs, including Rover. Rover is a platform that connects pet sitters or walkers to those who need those services. You can sign up to walk dogs, pet sit for owners out of town, or both. So if you love animals and are looking for a side hustle you can fit into your schedule, Rover is a great option.
Steady App: Final Thoughts
The gig economy has been steadily growing, and the pandemic has only fueled the desire and demand for flexible work.
With free membership and the most extensive collection of freelance and gig jobs, the Steady App is an excellent platform for anyone looking for flexible work. While you’ll see full-time job options on Steady, the platform is ideal for those looking for side hustles and flexibility.
The average member earns an extra $5,500 annually, so sign up today, boost your earning potential, and start putting more money in your pocket.
Since 2008, the number of private secondary mortgage providers has reduced dramatically, and those that remain in the market generally purchase jumbo loans from more affluent borrowers.
Fannie Mae and Freddie Mac have been under government conservatorship since the beginning of 2008. Ginnie Mae is wholly owned by the federal government. This is important to note because most people believe that the government has no business competing with private enterprises unless it is there to serve segments of the market that are not being adequately served by the private sector.
While banks also have the capacity to make loans and hold them on their balance sheets, the majority sell most or all of their loans to secondary providers. They do this to reduce their risk and to free up their capital to process more loans. Independent mortgage bankers use lines of credit to fund all of their loans and therefore must sell them promptly on the secondary mortgage market. The bottom line is that the secondary mortgage market is the platform that powers the entire mortgage ecosystem in the U.S.
The benefit of a system with a robust secondary mortgage market is that borrowers can access competitively priced mortgages in almost every market in the country, and because the secondary market is limited to a handful of providers, the mortgage approval process is widely standardized. In other words, the process and criteria to qualify for a mortgage are very much the same throughout the country.
Without a strong secondary mortgage market supported by the federal government, lenders would be able to fund far fewer loans, and would likely flock to the most affluent areas in the country, leaving less-affluent markets with fewer options to finance a home. The drawback to having a uniform secondary mortgage market is that there isn’t much differentiation in the market. Because mortgage lenders need to underwrite their loans to satisfy either Fannie Mae, Freddie Mac or Ginnie Mae guidelines, every mortgage lender in every market offers much the same products and follows the same underwriting guidelines, making it difficult for mortgage lenders to serve borrowers who fall outside the narrow underwriting box.
Incentivize lenders to service more minority borrowers
Because Hispanic and Black borrowers typically have less wealth and are primarily first-time homebuyers, processing loans for minority borrowers can require more time and work.
Additionally, loans made to first-time buyers with small down payments are considered riskier and have higher rates and fees to compensate for the additional risk. Loans made to minority borrowers also tend to be smaller, so the commissions are lower. Essentially, loans made to Hispanic and Black borrowers frequently make less money, cost more to produce and carry more risk. The financial incentives are simply not there for mortgage companies that want to do more minority lending; therefore, it shouldn’t be a surprise that most banks and mortgage lenders do just enough minority lending to stay out of regulatory trouble but secretly have no desire to do much beyond that.
Fannie Mae and Freddie Mac have had affordable lending goals for years, but the impact of closing the minority homeownership gap has not been that significant. If the federal government was serious about closing the minority homeownership gap, they would require Fannie, Freddie and Ginnie Mae to provide financial incentives to lenders that outperform the market in lending to minority, first-time buyers. Today, a handful of companies make a disproportionate percentage of loans to minorities.
They do it despite the financial sacrifices, but their success proves that it can be done. Minority lending goals without financial incentives will continue to have modest outcomes, but if the financial incentives are aligned with the goals, lenders will respond accordingly and the impact on minority lending would be substantial.
How to safely qualify more minority borrowers
The U.S. is one of the few places in the world where you can get a fixed-rate mortgage amortized over 30 years. It is also a great product that would not be possible without our secondary market. Fixed-rate mortgages provide stability and predictability. The criteria to qualify for a fixed-rate mortgage has not changed much in the last 60 years.
Lenders use systems called automated underwriting systems (AUS) that are accessed by Fannie Mae and Freddie Mac. Income and credit information are inputted into the AUS. Then, it makes a decision based on three primary factors: debt-to-income ratio (DTI), credit score and loan-to-value ratio (LTV). Credit and loan-to-value ratios are fairly easy to determine for most people, but evaluating income is where judgment is sometimes involved. Today, for borrowers who do not get all of their income fromfixed wages, their income is averaged over the most recent two-year span, making it more difficult for self-employed and part-time workers to qualify for a mortgage.
Latinos and other minorities are almost twice as likely to have self-employment or part-time income as the overall population. The emergence of the “gig economy,” where more people earn their money by working multiple part-time or temporary jobs, presents challenges for underwriters who are bound by a process that was designed when 90% of the population earned a standard paycheck. A borrower’s income should always be evaluated as part of the underwriting process, but closing the minority homeownership gap will require more innovation in determining income and the ability of a borrower to repay a mortgage.
Thin credit, when a borrower does not have enough established credit to generate a dependable credit score, is also an issue that tends to affect minority borrowers more frequently. Recently, Fannie Mae and Freddie Mac have allowed lenders to use rental history to build a credit profile. This is an important development because the data shows that a borrower’s history of paying rent or a previous mortgage is the single best indicator of a borrower’s ability to repay.
The consequences of risk-based pricing for mortgages
For the most part, interest rates for mortgages are determined by market forces; however, risk is also a factor. Ironically, higher interest rates and fees are assigned to the borrowers that can least afford them. This practice is called risk-based pricing. Borrowers with high loan-to-value ratios and lower credit scores are required to pay higher rates and fees for mortgages. This practice disproportionately affects minority first-time homebuyers. The most prominent exceptions to this practice are FHA and VA loans, in which everyone pays the same price and fees regardless of LTV or credit score.
Recently, the Federal Housing Finance Agency (FHFA), the regulator for Fannie Mae and Freddie Mac, made adjustments to their policies that reduced the pricing for loans that were previously deemed riskier. The policy initially received criticism from people who believed it penalized people with good credit. However, FHFA understands that homeownership rates, especially for minorities, won’t improve without addressing mortgage affordability for first-time buyers.
Diversity in the industry
If the industry was given one silver bullet to reduce the minority homeownership gap, it might be to substantially improve diversity in the mortgage industry. The process of purchasing a home is complicated and intimidating, especially for someone who has no experience with it. Having a mortgage professional who comes from your community, understands the cultural nuances and speaks your preferred language makes a huge difference. The mortgage companies that service the highest percentage of minority borrowers also have the most diverse teams — up and down their organization, from the C-suite to their operations and sales teams. Every year NAHREP surveys the top Latino mortgage originators in the nation. When asked why they chose the company for which they currently work, the No. 1 answer has been, “They understand my borrowers and know how to close my loans.”
Translation: my company employs people who look and sound like my clients and me.
Final words on access to mortgage credit
As our nation becomes a majority-minority country, our long-term prosperity depends on our ability to close ethnic wealth and prosperity gaps. Because home equity is the primary source of wealth for most Americans, closing the minority homeownership gap is the first step toward that goal. Closing the homeownership gap will require improving housing affordability, closing knowledge gaps, increasing diversity in the housing industry, and improving access to affordable mortgage credit. The latter can be accomplished by 1) Incentivizing mortgage lenders who originate a high percentage of their loans to minority borrowers, 2) Developing new metrics to determine the ability to repay, 3) Continuing to find solutions for borrowers with thin credit files, 4) Improve loan pricing for first-time homebuyers with average credit scores and small down payments, and 5) Dramatically improving diversity in the mortgage industry.
Gary Acosta is the co-founder and CEO of NAHREP.
This piece was originally published in the August/September 2023 issue of HousingWire Magazine. To read the full issue, click here.
Inside: Want to know what is a rack of money? You are in the right place. Learn the slang to rack, stacks, and bands. Plus tips to have your rolling in the money.
Have you ever wondered how much money is in a “rack” or what a “band” or “stack” of cash actually is?
If so, you’re not alone.
These terms are often used in movies and TV shows to describe large sums of money, but they can be confusing if you’re not familiar with them.
In this post, we’ll demystify some of the most common slang terms for money so that you can sound like a pro next time someone asks you how much a “rack” is worth.
Also, we will give you tips to make sure you are making 1000 a day.
What is a Rack of Money?
Simply put, a rack typically refers to $1,000.
Picture this: you’ve got ten $100 bills neatly stacked and bound together. That’s a rack.
Now, if a friend tells you, “I need three racks for a down payment on a car,” they’re saying they need $3,000. Easy to grasp, isn’t it?
Just remember, song lyrics might’ve switched things up a bit, but in real-world slang, a rack is a cool grand.
So next time you hear “rack,” you know it’s all about that thousand-dollar action.
How Much Is a Rack of Money?
“A rack” is a popular slang term for $1,000, usually in the form of ten $100 bills bundled together.
Don’t be overwhelmed, it’s just street language for stacks of hundred-dollar bills.
So, whether you’re saving for a dream vacation or splurging on a new gadget, just remember to play it cool and count those racks!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is a band of money?
Ever heard of the term “band” and wondered what it means in the context of money?
Well, a band is simply slang for $1000 in cash, usually bundled together with a rubber band. Here’s a breakdown:
It originates from the band used to hold a stack of cash together.
The term is also widely used in pop culture, specifically in rap songs to signify wealth.
If the band contains more than $1,000, it’s prefixed with the amount. For instance, a “10G band” means $10,000.
So if you stumble upon a phrase like “He’s flaunting a lot of bands”, it just means he’s flashing quite a stash of cash, probably in the club or jamming along to a hit rap song.
how much is a stack?
Ever heard someone saying they’ve got a ‘stack’? Let me break it down for you.
In the world of ‘money slang’, a ‘stack’ literally refers to a bundle of cash. Specifically, it’s a colloquial term for $1,000.
Here’s a quick bullet-point breakdown for clarity:
A ‘stack’ is slang for $1,000, typically in cash.
The term has its roots in the practice of actually stacking cash, but today, it’s used mostly in an abstract sense.
To give you an example: if you made a quick $5000 from a side gig, you’d casually say, “I made five stacks on my gig last week.” Now there you have it, you’re one step closer to mastering ‘money slang’!
Now, time to make 5000 dollars fast yourself.
Picture a real stack of money in hand
Now, let’s go on a visual imagination and bring those money affirmations to real life.
Let’s start…
You desire a real-life “rack” of money. Or maybe even 10 racks in your life.
Your eyes are drawn to a thick bunch of crisp $100 bills, bound together by a clean, white currency strap.
Meeting your gaze, shining under the light, are the majestic portraits of Benjamin Franklin galore, symbolizing the high-value of the stack.
Held firmly in hand, the image invokes feelings of prosperity, power, and accomplishment.
Each detailed texture and precise print on the bills reiterate authenticity, and the sequential serial numbers on the top bill tell a story of fresh prints.
This tidy, impeccably stacked rack, with ten $100 bills, effortlessly communicates, “Hello, I’m $1000!”
The first step to achieving financial independence is believing you can.
Make sure you put your stack of money as one of your vision board pictures.
How much does a rack cost versus a band?
Hey there, let’s talk about racks and bands. You probably heard these razzle-dazzle slang terms in music or pop culture, right?
Well, when it comes to costs, they’re actually identical.
A rack equates to $1,000. In equivalent terms, a band is also $1,000, often bundled up in crisp bills.
Let’s take a peek at a comparison chart to make things clearer:
Term
Cost Equivalent
Stack of Money
$1,000
Rack
$1,000
Band
$1,000
See how they match up? Next time you hear these terms, you’ll know exactly what’s up!
Learn how much cash should I have on hand.
How to Make a Rack Quickly
While this post focuses on various slang terms for money, Money Bliss is known for providing solid ideas to make money based on my expertise and experience in finance and the economy.
Most people enjoy learning how to make money online as a beginner.
Here are a few methods you could employ:
Sell Unwanted Items: If you have unused goods at home, consider selling them on online platforms like eBay or Facebook Marketplace. This could be anything from clothes and accessories to furniture and electronics. Check out Flea Market Flipper.
Freelance Work: Websites such as Upwork or Fiverr provide a marketplace for freelancers with varied skills. If you have proficiency in fields such as writing, graphic design, programming, or marketing, you could find plenty of work here.
Trading Stocks: Making money in the market is something people have done for many years! When buying stocks, the basic objective is to buy when the price is low and sell when the price is high. The value of stocks is typically influenced by a variety of factors including financial performance, economic indicators, and market sentiment. Check out this investing course.
Trading Options: Trading options can be risky but potentially profitable if done correctly, as investors can leverage a small amount of money to control a larger amount of stock. Potential investors should elaborate on their comprehension of the trading world before venturing into it which includes understanding the different types of investment products, their individual risks, and potential rewards. Learn how fast you can make money with stocks.
Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
Check out this free workshop!
Bookkeeping is the most stable, reliable & simple business to own. This is how to make a realistic income -either part-time or full-time.
Find out TODAY if this is THE business you’ve been looking for.
Selling printables is a profitable venture that entrepreneurs can tap into. These digital products, including anything from calendars to artwork, offer a low-overhead business model since they require minimal materials and can be created once and sold repeatedly. It’s an efficient way to harness one’s design skills to provide value to customers while generating a promising income stream. Learn more about selling printables.
Gig Economy: Apps platforms like Uber, Lyft or DoorDash offer an opportunity to make money fast based on the time you are willing to invest.
Tutoring and Teaching: If you’re well-versed in a subject, offer tutoring services or consider teaching an online course. Websites like Chegg Tutors make it easy to start.
Be a Virtual Assistant: As a virtual assistant with no experience, you can anticipate managing various administrative tasks from a remote location, such as data entry, scheduling appointments, and even aiding with digital marketing efforts. This career path offers flexibility, the possibility to work from home, and the chance to work with entrepreneurs from different sectors. Use this virtual assistant checklist to get started.
Rent out Your Space: If you have an extra room or a property, consider listing it on Airbnb or a similar property rental site. This can become a significant source of income with small investments in the upkeep of the property.
Remember, it’s vital to choose an option that aligns with your skills and interests to ensure it’s not only a source of quick cash but also a sustainable and enjoyable endeavor.
You need to consider the legality and ethicality of the ways you choose to make money fast.
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
Time to Bring in Your Stacks of Money
Now that you know the lingo for money, you can impress your friends with your knowledge. Plus, you can use this new information for future reference.
In summary, the terms band, stack, and rack are used to represent these same amounts of money, particularly in slang context.
Usually, they signify $1,000 in cash, and the presence of more numbers indicates a multiple interest in this monetary sum.
Now, how many racks do you have? What are you doing to make money?
These are important aspects if you want to become financially independent.
Remember, keeping your money organized isn’t just tidy, it’s smart!
Next, up learn how much is 10 figures!
Know someone else that needs this, too? Then, please share!!
Buying a Home with 1099 Income can present unique challenges for self-employed individuals. Understanding the implications of 1099 income on mortgage loans is crucial. Lenders carefully assess tax returns and stable income to determine eligibility.
Strategies such as maximizing chances of approval and exploring alternative documentation options can help self-employed borrowers qualify. Government-backed and conventional mortgage options, as well as home equity for down payment assistance, are available.
Overcoming challenges in the mortgage process requires addressing higher interest rates, documenting income, and navigating common hurdles. Assessing affordability and staying informed about the future of home buying for self-employed buyers is essential. Recent changes and technological advancements are shaping the lending landscape.
Understanding 1099 Income and Its Implications on Home Buying
When it comes to buying a home, it’s important to understand the implications of 1099 income. This type of income is earned by individuals who are considered self-employed, meaning they work as independent contractors or freelancers. It’s essential to grasp how 1099 income affects mortgage loans and what lenders look for when determining eligibility for home financing.
What is 1099 income and who is considered self-employed?
1099 income refers to the earnings received by individuals who work on a contract basis, rather than being traditional employees. These individuals are considered self-employed as they are responsible for their own taxes and don’t receive benefits like health insurance or retirement plans from an employer. Self-employed individuals include freelancers, consultants, and independent contractors across various industries.
The impact of self-employment on mortgage loans
Being self-employed can have specific implications when applying for a mortgage. Unlike traditional W-2 employees who have a consistent income and verifiable employment, self-employed individuals may face additional scrutiny. Lenders assess the stability and predictability of income to evaluate the borrower’s ability to make mortgage payments.
Qualifying for a mortgage with 1099 income: What lenders look for
Lenders typically consider several factors when qualifying self-employed borrowers with 1099 income for a mortgage. These factors include the length of self-employment, consistency of income, and documentation of tax returns. Lenders may require a minimum of two years of self-employed tax returns to establish a track record of income stability. They also evaluate the borrower’s debt-to-income ratio and liquid assets to ensure they can handle mortgage payments and other financial obligations.
The Importance of Tax Returns and Stable Income
When it comes to buying a home with 1099 income, understanding the role of tax returns and demonstrating stable income is essential. Lenders thoroughly analyze tax returns to assess your financial situation and determine your eligibility for a mortgage loan. Here are the key aspects to consider:
Analyzing your tax returns: What lenders assess
Lenders carefully scrutinize your tax returns to evaluate your income stability and ability to repay a mortgage. They review your gross income, deductions, expenses, and net income to get a comprehensive understanding of your financial standing. Additionally, lenders examine your Schedule C, which reports business profit and loss, to gauge the viability of your self-employment and the consistency of your income stream.
Demonstrating stable income as a self-employed borrower
As a self-employed borrower, proving stable income is crucial to reassure lenders of your ability to make regular mortgage payments. One way to establish this stability is by maintaining consistent income over a period of time. Providing documentation such as bank statements, profit and loss statements, and invoices can help demonstrate a steady income stream. Showing a history of consistent income is beneficial in building trust with lenders.
The role of two years of tax returns in mortgage approval
Two years of tax returns serve as a benchmark for lenders to verify the sustainability of your income. This requirement helps lenders assess the consistency and predictability of your earnings. Typically, lenders average your income across the two-year period to determine how much you can afford to borrow. Keep in mind that a significant decrease in income from one year to another may require additional explanation or documentation to strengthen your mortgage application.
Understanding the importance of tax returns and stable income is vital for self-employed individuals aiming to purchase a home. By analyzing your tax returns, demonstrating stable income, and meeting the requirements set by lenders, you can improve your chances of securing a mortgage loan.
Strategies for Self-Employed Borrowers to Qualify for Home Loans
When it comes to buying a home with 1099 income, self-employed borrowers face unique challenges. However, there are strategies to maximize your chances of qualifying for a home loan:
Maximizing your chances: Tips for self-employed borrowers
Maintain a strong credit score: Lenders consider credit history and scores to assess your financial responsibility.
Save for a down payment: A larger down payment increases your chances of loan approval and improves your loan terms.
Manage your debts: Keep your debt levels low and avoid taking on new debts before applying for a mortgage.
Keep clean financial records: Maintain organized financial records, including bank statements, tax returns, and profit/loss statements.
Alternative documentation options for income verification
Traditional income verification methods, such as W-2 forms, may not be applicable for self-employed individuals. Consider alternative options:
Bank statements: Provide several months’ worth of bank statements to demonstrate consistent income deposits.
Profit and loss statements: Prepare accurate profit and loss statements to showcase your business’s financial health.
Letter from a certified public accountant (CPA): A letter from a CPA can verify your self-employment status and income.
Understanding debt-to-income ratio and its impact on loan approval
Lenders calculate your debt-to-income (DTI) ratio to assess your ability to repay the loan. To improve your chances of loan approval:
Minimize your DTI: Reduce your monthly debt obligations and aim for a DTI ratio below the lender’s maximum threshold.
Increase your income: Boosting your income through additional revenue streams can help improve your DTI ratio.
Pay off existing debts: Lowering your outstanding debts reduces your monthly obligations and improves your DTI ratio.
Mortgage Options and Requirements for Self-Employed Buyers
Mortgage options for self-employed buyers offer various opportunities to secure financing for buying a home with 1099 income. Understanding the available options can help navigate the loan process successfully.
Government-backed loans for self-employed individuals
Government-backed loans, such as FHA loans, VA loans, and USDA loans, provide viable mortgage options for self-employed individuals. These loans often have more flexible requirements compared to conventional loans, making them accessible and attractive for those with 1099 income.
Conventional mortgage loan options for self-employed borrowers
Conventional mortgage loans are another option for self-employed borrowers. These loans typically require more extensive documentation to prove income and financial stability. Self-employed individuals may need to provide additional paperwork, such as profit and loss statements, bank statements, and business tax returns, to demonstrate their ability to repay the loan.
Exploring home equity options for down payment assistance
Self-employed buyers can explore home equity options to assist with their down payment. Utilizing the equity built in an existing property can help secure a mortgage with favorable terms and potentially avoid private mortgage insurance (PMI). Home equity loans or lines of credit can provide the necessary funds for the down payment, allowing self-employed individuals to fulfill their homeownership dreams.
Overcoming Challenges and Navigating the Mortgage Process
As a self-employed borrower, there are unique challenges to overcome when navigating the mortgage process. Addressing higher interest rates is one of the first hurdles to tackle. Lenders often consider self-employed individuals as higher risk borrowers, resulting in slightly higher interest rates compared to traditionally employed borrowers. It is important to factor in these rates when assessing affordability and determining the long-term financial implications of homeownership.
Documenting your business and personal income is another critical aspect for self-employed borrowers. Lenders require verifiable proof of income to assess your loan eligibility. This includes providing tax returns for your business and personal finances for the past two years. Accurate and complete documentation is crucial to establish a clear understanding of your income stability and ability to repay the mortgage.
Common Hurdles and How to Overcome Them in the Loan Process
Difficulty Meeting Traditional Income Requirements – Self-employed borrowers often face challenges meeting the traditional income requirements set by lenders, as their income may fluctuate or be less predictable compared to salaried employees. To overcome this hurdle, you can work with a knowledgeable mortgage broker who specializes in assisting self-employed individuals. They can help navigate through alternative documentation options and find lenders who are more flexible with income verification.
High Debt-to-Income Ratio – Another common hurdle self-employed borrowers encounter is a high debt-to-income ratio. This ratio compares your monthly debt payments to your monthly income. To improve your chances of loan approval, consider reducing your overall debt by paying off high-interest debts or consolidating them into more manageable payments. Additionally, increasing your income or finding ways to demonstrate consistent income over time can help lower your debt-to-income ratio.
Limited Work and Income History – Having a limited work and income history as a self-employed borrower can be a challenge when seeking a mortgage. Lenders typically prefer borrowers with a steady work history and established income. However, you can showcase your industry experience, expertise, and success through a well-crafted business plan and professional portfolio. Demonstrating a stable and promising future in your line of work can help offset the lack of a traditional employment history.
Important Considerations for Self-Employed Buyers
As a self-employed buyer, there are several important considerations to keep in mind when purchasing a home. These include assessing affordability, understanding the impact of self-employment on your mortgage, and exploring the benefits of FHA loans for self-employed individuals.
Assessing affordability and determining your monthly income
Before diving into the home buying process, it’s crucial to assess your affordability. As a self-employed individual, your income may vary from month to month, making it essential to calculate your average monthly income. Consider your tax returns, invoices, and any other financial documents to determine a reliable estimation of your income. This will help you determine how much you can afford to spend on a mortgage payment each month.
Understanding the impact of self-employment on your mortgage
Self-employment can have a significant impact on your mortgage application. Lenders typically scrutinize self-employed individuals more closely due to the potential volatility of their income. It’s important to provide a comprehensive picture of your business and finances to alleviate any concerns. Prepare to provide documentation such as profit and loss statements, bank statements, and contracts or agreements with clients to demonstrate the stability and consistency of your income.
Exploring the benefits of FHA loans for self-employed individuals
For self-employed buyers, Federal Housing Administration (FHA) loans can offer several benefits. These loans have less stringent requirements compared to conventional mortgages and may be more accommodating for self-employed individuals. FHA loans typically have lower down payment requirements, lenient credit score criteria, and flexible income verification options. Exploring FHA loan programs tailored to self-employed individuals can provide viable financing options for buying a home.
The Future of Home Buying for Self-Employed Borrowers
The landscape of home buying for self-employed individuals is constantly evolving, with recent changes reflecting the needs and challenges of this growing segment of borrowers. Technological advancements and innovations in mortgage lending are also playing a crucial role in shaping the future of home buying for self-employed borrowers. Let’s explore some key aspects that are shaping the future of home buying for self-employed individuals.
Recent changes in the lending landscape for self-employed individuals
In recent years, there have been significant changes in the lending landscape that specifically address the needs and realities of self-employed borrowers. Lenders have started offering more flexible mortgage options tailored to accommodate different types of income, including 1099 income. These changes have made it easier for self-employed individuals to qualify for mortgages, as lenders now consider a wider range of income documentation and alternative verification methods.
Potential developments and opportunities for self-employed home buyers
Expanded lending options: The lending industry is constantly exploring new ways to cater to the unique needs of self-employed individuals. This includes the development of specialized loan programs and products that are specifically designed for self-employed borrowers, offering more favorable terms and conditions.
Enhanced income verification methods: Technology-driven income verification methods, such as bank statement analysis and cash flow analysis tools, are gaining traction. These methods provide a more accurate assessment of a self-employed borrower’s income, accounting for fluctuations and seasonality, which can help strengthen their loan applications.
Increased support for gig economy workers: As the gig economy continues to grow, more and more individuals rely on income from freelance work, contract jobs, or side hustles. The lending industry is recognizing this shift and exploring options to accommodate gig economy workers, ensuring fair access to homeownership opportunities.
Overall, the future of home buying for self-employed borrowers looks promising. With ongoing changes in the lending landscape and advancements in technology, self-employed individuals can expect more accessible, efficient, and tailored mortgage solutions to fulfill their homeownership dreams.
About the author – Eric Jeanette started as a Realtor in 1993 and eventually transitioned to lending. His companies Dream Home Financing and FHA Lenders provide mortgage information and education to consumers. They also provide those same consumers with a free lender match service through a network of lenders for conventional, FHA/government, subprime, self-employed and many other niche loan programs.
ETFs are tradable funds that investors can buy and sell on stock exchanges all day. They typically hold a basket of assets, such as stocks or bonds, and mirror the moves of another underlying index. Since its start almost three decades ago, the ETF industry has taken the financial world by storm, and there are thousands of different ETFs on the market that investors can choose from.
But each investor is different, and some ETFs likely won’t be a good fit for their portfolio or strategy. Learning to choose or pick ETFs that do fit your strategy can take some practice, but it’s good to have some guidelines in mind.
How Do I Pick an ETF?
There’s no right or wrong way to pick an exchange-traded fund (ETF), but you can follow a process to help you determine which securities may be the best fit for you. It starts with picking an asset class.
Step 1: Pick the Asset Class
Because the performance of an ETF is so closely tied to an underlying index, investors need to first decide which underlying asset class they want exposure to. The main asset classes are stocks, bonds, currencies, and commodities.
Risk is generally inversely correlated to return. So riskier assets have the potential to deliver greater returns, while safer assets tend to deliver reliable, albeit smaller, returns. Stocks are considered to be a riskier, more volatile asset class. Commodities even more so. Meanwhile, bonds tend to be safer but also deliver more muted returns.
Keep in mind, just because an investor buys an ETF that gives them exposure to one asset class, that doesn’t preclude them from buying another that invests in another market. In fact, it’s a healthy portfolio diversification strategy to allocate one’s money into different asset classes, a practice known as asset allocation.
Step 2: Narrow the Focus
Once an investor has chosen their asset class, they can dive deeper within that market. When it comes to stock ETFs, this usually involves picking an industry – like technology or financial – that they’d like to get greater exposure to. Equity ETFs may also focus on a specific attribute a stock can have. Or dividend ETFs, which hold shares of companies with regular payouts.
For bond ETFs, investors can decide between funds that invest in U.S. government-bond versus bonds issued by countries abroad, as well as investment-grade (higher quality) company debt versus high-yield (junk) bonds.
More recently, thematic ETFs have taken off. These are stock funds that tend to be much narrower than the traditional sector ETF. They can focus on a niche subsector, like robotics, electric cars or blockchain, or even modern trends, like the gig economy or working from home.
There are pros and cons to thematic ETFs: while they’re often marketed as a convenient way to wager on an investment story, they also tend to underperform the broader market. Thematic ETFs have also been criticized for being too narrow and not offering the wide breadth that ETFs were originally designed to offer.
Step 3: Explore Different ETF Strategies
ETFs began as a way to provide investors access to broad markets with a single investment. Since then however, the popularity of the industry has led to the creation of numerous different kinds of ETFs, some of which employ complex strategies.
Here are some of the different ETF types:
• Leveraged ETFs allow investors to make magnified bets on different assets or markets. So instead of replicating the move of the underlying index exactly, leveraged ETFs will produce a move that’s 2x or 3x.
• Inverse ETFs let investors wager against an asset, so shorting or betting that the price of a market will go down. So if on a given day, the underlying market goes down, the inverse ETF’s price will go up.
• Actively Managed ETFs invest in assets without following an index. While ETFs are usually a form of passive investing–the strategy of tracking another index–actively managed ETFs are like stock-picking strategies packaged into a tradable fund.
• Smart-Beta & Factor ETFs use a rules-based system — such as stock weightings, valuations, or volatility trends — to choose the investments in a fund. These funds are often considered a hybrid between passive and actively managed ETFs.
• Currency-Hedged ETFs are funds that let investors wager on a basket of overseas stocks, while mitigating the risk that stems from currency fluctuations.
Step 4: Look at ETF Costs
A fundamental reason why ETFs have become so influential is their low cost. Low ETF fees have compressed costs across the board in asset management. The average expense ratio of most ETFs has fallen over time. Expense ratios are a percentage of assets subtracted each year. So, an expense ratio of 0.45% means that the charge is $4.50 for every $1,000 invested each year.
Because the vast majority of ETFs tend to be passive, they tend to be much cheaper than mutual funds, many of which are still actively managed. More complex ETFs like leveraged funds, or actively managed ones, tend to have higher expense ratios. But some passive ETF fees have hit rock-bottom levels.
Step 5: Other Ways to Analyze ETFs
What about how well an ETF has done? Should that matter? While profitability can make an investment look more attractive, it shouldn’t be the only factor investors use when determining which ETF to buy. That’s because in investing, past performance is not indicative of future results.
For ETFs, another key measure of performance is how well it tracks the underlying index. Tracking errors, when a move in the ETF veers from one by the market it’s designed to track, can come up from time to time, particularly in leveraged funds or ones that invest in stocks overseas.
Looking at the assets under management (AUM) can be a helpful way to pick an ETF. A larger AUM can signal an ETF’s popularity, which in turn makes it more likely that it’s liquid, or easy to trade without impacting prices.
How to Find an ETF’s Holdings, Prospectus, and Fact Sheet
Another touted perk of ETFs is their transparency. Investors can look up what’s exactly in a fund by going to the ETF provider’s website and searching for the fund. Contacting the ETF provider directly for this information is also possible. ETF providers are required to update this information regularly.
Securities and Exchange Commission (SEC) regulation also requires that ETF providers make easily available an ETF’s prospectus. The prospectus has information about the ETF including its investment objective, the risks, fees, as well as expenses. For investors interested in an ETF, one of the most important things they can do is research the fund by carefully reading the prospectus.
Similarly, ETF fact sheets act like quick summaries of the fund, giving key information like performance, the top holdings, and other portfolio characteristics. ETF providers typically produce fact sheets every quarter and make them available on their website.
The Takeaway
Choosing an ETF from the thousands out there can seem daunting, but taking a step-by-step approach can help individuals sort through the multitude of options. A key step investors can take in researching ETFs is reading the fund’s prospectus, where they’ll find vital information on the investment objectives as well as potential risks.
Considerations include which asset class an investor wants to invest in; how broad or narrow of an exposure they want; costs — which are usually shown as expense ratios; and lastly, an ETF’s size can give clues on the popularity and liquidity of the fund. One ETF, on its own, can provide some diversification. However, some people choose to use a number of ETFs as building blocks to assembling a well-balanced portfolio.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
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SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.
Exchange Traded Funds (ETFs): Investors should carefully consider the information contained in the prospectus, which contains the Fund’s investment objectives, risks, charges, expenses, and other relevant information. You may obtain a prospectus from the Fund company’s website or by email customer service at [email protected] Please read the prospectus carefully prior to investing. Shares of ETFs must be bought and sold at market price, which can vary significantly from the Fund’s net asset value (NAV). Investment returns are subject to market volatility and shares may be worth more or less their original value when redeemed. The diversification of an ETF will not protect against loss. An ETF may not achieve its stated investment objective. Rebalancing and other activities within the fund may be subject to tax consequences.
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Cash App, a digital money transfer service, has transformed the way we manage our finances. From sharing restaurant bills with friends to paying your gig economy contractor, this app packs a punch beyond the basics of money transfer. Think of it as your mobile money manager, where you can easily check your Cash App balance, do direct deposits, cash out, and even manage your taxes. Yes, you heard right, Cash App taxes can also be managed within the app.
History of Cash App
In 2013, the minds at Square Inc. introduced the world to Cash App. With a vision to simplify monetary transactions, they created a platform that has become a key player in the fintech revolution. It’s fascinating to observe how the app evolved from a basic peer-to-peer payment service to a fully-fledged financial solution.
How Cash App Works
Imagine this: your nephew needs quick money for school supplies. He’s in another city, and you have no idea how to send him cash without physically being there. Enter Cash App.
Once you’ve installed the app and linked your bank account, transferring money is as simple as choosing a contact, entering an amount, and hitting ‘Pay.’ The money will instantly move from your Cash App account to theirs. And voila, crisis averted!
Here are the steps to use Cash App
Step 1: Download and Install
Cash App is available for both iOS and Android devices. You can find it in the App Store or Google Play Store. Once you’ve located the app, download and install it on your device.
Step 2: Create Your Account
Open the app, where you’ll be prompted to enter your mobile number or email address. You’ll then receive a confirmation code, which you need to enter in the app. This process verifies your account and helps protect your personal information.
Step 3: Link a Bank Account
Next, you’ll be asked to link a bank account. Enter your debit card details associated with your bank account. By linking your bank account, you’ll be able to transfer funds to and from your Cash App account seamlessly.
Step 4: Create a $Cashtag
A $Cashtag is a unique identifier for your Cash App account. This is what you’ll give to people when you want to receive money, and what you’ll use when you’re sending money to others. It can be up to 20 characters long and should be something you’re comfortable sharing with others.
Step 5: Understanding the Interface
Once you’re set up, you’ll notice that the main screen is split into two main sections:
The “Cash & BTC” section displays the current balance in your Cash App account. If you’ve chosen to invest in Bitcoin via the app, your balance will be reflected here too.
The “Banking” section allows you to add cash to your balance, cash out your balance to your bank account, view transactions, or invest in stocks and Bitcoin.
Step 6: Sending Money
To send money, tap the “$” symbol at the bottom center of the screen. Enter the amount you want to send, then press “Pay.” You’ll be asked to enter the recipient’s $Cashtag, email, or phone number. Add a note to remind them what the payment is for, then press “Pay” again.
Step 7: Receiving Money
When someone sends you money, it will appear in your Cash App balance. You can keep the funds in the app for future transactions, or cash out to your bank account.
To cash out, tap the “Banking” button at the bottom of the screen, then tap “Cash Out.” You can choose to cash out instantly for a small fee, or to cash out to your bank account within 1-3 business days for free.
Step 8: Using the Cash Card
Cash App offers a free debit card called the Cash Card. You can use this card to spend your Cash App balance at any store that accepts Visa. For individuals who frequently use their credit card for purchases, the Cash App can be a great way to boost savings toward chosen goals without much work. To request a card, tap the card-shaped icon on your Cash App home screen and follow the steps.
Step 9: Investing
Cash App allows you to buy stocks or Bitcoin directly from your account. From the main screen, tap the Investing tab (looks like a chart). Here you can view your investing portfolio, search for stocks, and make trades.
Remember, investing involves risks, and it’s important to understand these before you start.
The beauty of Cash App is its simplicity. It’s a secure and versatile platform that’s ideal for quick mobile payments, money transfers, and even dabbling in investments. Whether you’re a parent paying for piano lessons or a college student splitting rent with roommates, Cash App is an option worth considering.
Cash App Features
Cash App isn’t just a money transfer service. It’s so much more. You can link it to Apple Pay or Google Pay, pay with the custom Visa debit card (known as the Cash Card), and even buy Bitcoin cryptocurrency. Cash App also offers a feature called ‘Cash App Investing.’ With it, users can invest in stocks, making the world of Wall Street accessible right from your smartphone.
One exceptional feature of Cash App is that it allows users to receive paychecks through direct deposit. This is excellent for workers in the gig economy or for anyone preferring a digital banking experience.
Is Cash App safe?
In the age of data breaches and identity theft, Cash App ensures the safety of Cash App users’ personal information through encryption and fraud detection technology. The app is designed to keep your transaction details secure, even if your phone is lost or stolen. It also provides notifications for all account activities, helping you keep an eye on your transactions.
While Cash App is a financial platform, it is not a bank. It provides banking services and debit cards through its bank partners, but a great feature is that the balance in your account protected by FDIC insurance (Federal Deposit Insurance Corporation), just like a traditional bank.
Competitor Analysis
There are other players in the digital money transfer field such as Google Pay, Zelle, Venmo, Square Cash, and PayPal. What sets Cash App apart, however, is its combination of simplicity, versatility, and user-focused design. While other services might offer similar features, Cash App’s uncluttered interface and intuitive user experience keep it at the forefront of other payment apps.
See my in-depth comparison between Cash App and its competitors
Economic Impact
The rise of apps like Cash App has changed the financial landscape dramatically. By eliminating the need for brick-and-mortar banks, they’re driving the shift towards a more digital, user-centered banking experience.
Future of Cash App
Looking forward, Cash App appears poised to expand its offerings even further. The rapid growth of fintech and evolving consumer preferences suggest that apps like Cash App could begin to offer more extensive services, such as loans or insurance products, in the not-too-distant future.
Critiques and Controversies
No service is without its challenges. Cash App has faced criticisms related to customer service and has also been used for scams. The company has taken steps to address these issues and is continually working to improve Cash App user experience and security.
Through its various features and offerings, Cash App has made managing finances a more seamless experience. Whether you’re looking to go digital with your banking, simplify money transfers, or venture into investing, Cash App may become your preferred payment method.
Cash App FAQs
To wrap things up, let’s address some common queries you may have about Cash App:
Can you withdraw money from Cash App without a card?
Yes, you can transfer money from your Cash App account to your linked bank account.
Can someone steal your money with your Cash App name?
No, your Cash App name, also known as a $Cashtag, is just an identifier for others to send money. They can’t access your funds with it.
What happens when someone sends you money on Cash App?
The money will be added to your Cash App balance. You can use it within the app or withdraw it to your linked bank account.
How do you withdraw from Cash App without a bank account?
You need to have a linked bank account or a Cash Card to withdraw money from Cash App.
Do you have to provide your Social Security Number to Cash App?
For certain functions, such as sending large amounts of money or using the app for investing, Cash App does require your Social Security Number to comply with federal regulations.
Do you need a bank account with Cash App?
You can send and receive money with just a debit card, but having a bank account linked allows you to transfer funds to and from your bank.
Is it free to make ATM withdrawals using Cash App?
There may be a fee for using ATMs with your Cash Card, but Cash App can reimburse the fees if you have at least $300 coming into the app each month, like a paycheck deposit.
Inside: Are you looking for ways to make money quickly and easily? This guide has a variety of tips and tricks to help you make 1000 a day.
Making money is something that everyone is interested in. And why wouldn’t we be? Money gives us the ability to buy the things we want, travel, and live a lifestyle that most people can only dream of.
But what if I told you that it was possible to make $1000 a day? Would you believe me?
Well, in this blog post, I’m going to show you some of the best ways to make money really fast.
So if you’re looking to make some quick cash or consistent income, then this is the post for you!
In this post, I will share with your some of the best ways that I know of to make money $1k a day on a regular basis.
So if you’re ready to learn how to make 1000 a day, then let’s get started!
Is it possible to make $1000 a day?
Yes, it is possible to make $1000 a day.
In fact, this is something I regularly do (see picture to prove it).
However, achieving this goal requires commitment, hard work, and a solid plan. Factors that contribute to achieving this goal include finding a method that works for you, sticking with it, and putting in the necessary effort.
Additionally, having a unique skill set and interest in a particular method can increase the chances of success.
How to make $1000 a day?
Making $1000 a day is an appealing goal for many people, whether it’s a one-time need or a consistent source of income. Fortunately, there are several ways to achieve this goal.
Here are the top ways to make $1000 a day:
Start a high-paying job: Some jobs pay over $300k a year, and while they may require advanced degrees and education, there are also a few that don’t require a college degree.
Offer high-value services: You can offer services such as pet-sitting, tutoring, design work, or writing to make money.
Start a business: You can start a business that generates $1000 a day, such as a digital marketing agency, freelancing, or a service-based business.
Sell items you no longer need: You can sell items on eBay, Craigslist, or other online marketplaces to make quick cash.
Let your money work for you: You can invest in stocks and shares, real estate, or property to earn upwards of $1000 a day.
While each method has its own advantages and disadvantages, with the right strategy and dedication, making $1000 a day is achievable.
So, get started today and see how much money you can make.
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Best ways to make 1000 a day
We’ve compiled a list of our favorite ways to make money really fast – specifically $1k a day!
Many times, you will have to invest 100 to make 1000 a day.
If you’re looking for ways to make some extra cash, or even earn a full-time income, this post is for you.
1. Freelance Writing
Freelance writing is a great way to make extra money or even replace your full-time job. There are various types of content that freelance writers can specialize in, such as long-form content or shorter direct-response copywriting.
With freelance writing, you can earn over $.50 or even $1 per word, which means that a 1,000-word article could net you $1,000 quickly.
To start, you need to establish a portfolio of your work to pitch to new clients. This portfolio should include links to any relevant articles or copy you’ve written that’s related to the client you’re pitching. If you don’t have a portfolio yet, you might need to do some work at lower rates to get your foot in the door.
Even if you don’t consider yourself a writer, don’t strike it off the list just yet. With the right approach and mindset, anyone can become a successful freelance writer.
2. Crafting
Crafting offers many benefits beyond just making extra cash. It allows for flexibility in your schedule, creativity in your work, and the ability to turn a hobby into a lucrative business.
If you are creative and have a talent for creating handmade items, then starting a crafting business is the perfect way to monetize that skill by doing something you enjoy. There are plenty of crafts to choose from and you may even become an instructor!
The most difficult side is you are trading your time for money and it may be difficult to scale.
3. Day Trading Stocks
Day trading stocks is a high-risk, high-reward investment strategy that involves buying and selling stocks within a single trading day. It requires a great deal of knowledge, discipline, and risk management to be successful.
However, there is a large group of us who have made the $1000 in a day club.
Successful day traders use a combination of technical analysis, risk management, and discipline to make profitable trades.
This choice requires discipline, a proper trading education, knowledge, and risk management.
Trade and Travel with Teri Ijeoma is a popular course that investors can take to learn about trading stocks and options and begin their journey to making $1,000 a day.
4. Trading Options
Trading options can be a lucrative way for seasoned investors to make money.
With options, investors can speculate on different stocks with only a fraction of the investment capital needed to buy the stocks outright.
Investors who are familiar with investing in individual stocks can take the next step in the process by trading options. While options may seem exotic on the surface, they are a common tool used by seasoned investors and are especially valuable during volatile activity in the stock market.
To trade options successfully, investors need research skills, investing knowledge, discipline, and patience.
Trading options can be a high-risk option, especially for those who lack expertise in the area. However, it can be extremely lucrative for those who have experience and knowledge in the stock market.
Investors should consider taking courses to learn more about trading options.
5. Youtube
YouTube can be a great source of income for those who are willing to put in the effort to create quality content. It offers multiple ways to generate revenue, including sponsorships, affiliate marketing, and Google Adsense.
With the right approach, it’s possible to make $1000 or more per day on YouTube.
Remember, success on YouTube takes time and hard work, but the potential rewards are significant.
6. Selling on Amazon
Selling products on Amazon can be a highly profitable business opportunity.
Amazon FBA, or Fulfilled by Amazon, is a business model where you send your inventory to Amazon warehouses and they handle the rest, including storage, shipping, customer service, and returns.
This makes it a great option for digital nomads and those looking to scale their business quickly.
With an average profit margin of $20 per sale, it’s possible to make $1,000 per day by selling just 5 units per day of 10 different products.
7. Sell Printables Online
Selling printables online has become a popular way to make passive income.
With the rise of digital products, creators can sell anything from coloring pages to budget spreadsheets on platforms like Etsy. Thousands of creators make a living selling digital products, and it’s easy to see why.
Learn how these sellers got started.
The key is to pick a topic you’re knowledgeable in and passionate about, so you can create high-quality products that people will want to buy.
8. Dropshipping
Dropshipping is one of the best ways to make $1000 a day, especially for those looking to start a business with minimal initial investment.
This business model allows entrepreneurs to sell products to customers without ever holding a single piece of stock.
Dropshipping is a viable and profitable business model that can generate high profits without the hassle of managing inventory. With the right niche, platform, supplier, and marketing strategy, entrepreneurs can make $1000 a day or more with dropshipping.
9. Consulting
Consulting is one of the best ways to make $1000 a day!
It’s a lucrative career option that allows you to provide expert advice to clients and help them solve problems.
The first step to becoming a consultant is to determine your area of expertise. This could be anything from personal finance to marketing to human resources. Your expertise should be something that you have significant knowledge and experience in.
One of the most important aspects of becoming a consultant is building your network. This includes reaching out to potential clients, attending networking events, and connecting with other professionals in your field.
10. Become a Virtual Assistant
Being a virtual assistant can be a great way to make money while setting your own hours.
As a virtual assistant with no experience, you can work from home and typically on your own schedule. You can choose to work part-time or full-time based on your availability and the workload of your clients.
The tasks that you are asked to perform as a virtual assistant can vary widely, but commonly needed skills include administration, accounting and bookkeeping, marketing, communications, customer service, and many other capacities.
You don’t need special skills or training for this job, as most clients will bring you up to speed on what they need to do. However, having organizational, communication, and time-management skills can be helpful.
Check out the checklist to get started as a virtual assistant.
11. Side Hustles
Side hustles are a great way to earn extra income and supplement your regular income. With a little effort and some creativity, you can make up to $1000 a day with certain side hustles.
Here are some of the best side hustles that can help you achieve this goal:
Deliver food: You can make good money by delivering food with these apps. You can choose your own hours and work as much or as little as you want. DoorDash is a great option.
Drive with ridesharing apps like Uber and Lyft: If you have a car and some free time, you can earn money by driving people around. You can make up to $1000 a day, depending on how much you work.
Pet sit or walk dogs: If you love animals, you can make money by pet sitting or dog walking through Rover.com. You can earn up to $50 per day, depending on the services you offer.
Babysit or tutor: If you have experience with children or are good at a particular subject, you can offer your services as a babysitter or tutor through Care.com. You can make up to $50 per hour, depending on your qualifications.
Side hustles are a great way to make extra money and reach your financial goals.
12. Start a Business
Starting a business is one of the most effective ways to make 1000 dollars a day on a regular basis. However, it requires careful planning and execution to succeed.
The first step is to research the market and identify a profitable business idea and build it to profitability.
Challenges may arise, such as competition, financial setbacks, and marketing difficulties, but with persistence and determination, you can overcome them and achieve financial success.
The potential for significant financial gain from starting a successful business is immense, making it a worthwhile endeavor for anyone willing to put in the effort.
13. Yard Work
Yard work is an excellent way to make $1000 a day, especially if you have some extra time and don’t mind getting dirty.
If you want to get up and running quickly, there is nothing better than a local side hustle to earn extra money such as mowing lawns in your neighborhood.
Mowing lawns is not only a great side hustle for adults but also for teens. For an average size lot, you could expect to make at least $35. If you could line up a few lawns each weekend, you could easily make an extra $1000 each month.
Landscaping, leave pickup, and bush trimming are all simple tasks that you can complete quickly if you have the right equipment. You can choose to set an hourly rate or get paid for the entire job, depending on the task.
You may have to start hiring crews in order to hit $1k a day.
14. AirBnb or VRBO Rentals
Airbnb or VRBO are popular platforms for renting out your property to travelers.
Many successful hosts have earned $1000 or more per day because they have accumulated more than one property.
One tip for success is to garner excellent reviews that people want to come back time and time again.
15. Affiliate Marketing
Affiliate marketing is a lucrative way to make money online and has the potential to earn you $1000 a day.
This works well for influencers who have a reach of thousands of people. Another way is creating a niche website that focuses on a specific product or market segment.
It’s essential to promote products effectively to generate revenue. Successful affiliate marketers have earned six figures or more per year.
16. Flip Products or Retail Arbitrage
Retail arbitrage is a popular business model that can help you make $1,000 per day or more. The premise is simple – buy or find things cheap and resell them for a higher price.
This is a great example of how to flip money.
To be successful, you’ll need to have an eye for the right product and do product research to choose products that will sell.
Here is a list of the most popular items to flip.
17. Pickup Services
Pickup services refer to businesses that provide transportation and delivery services for goods, furniture, or other items. These services are in high demand, especially in urban areas where people are always on the move and need help with moving heavy or bulky items.
Starting a pickup service business requires some equipment, such as a truck or van, and marketing strategies to attract customers.
So, if you are looking for a new side hustle or business opportunity, consider pickup services as a viable option.
18. Casino Gambling
While casino gambling is not a recommended way to make $1000 a day, it is still worth mentioning as a potential option.
However, it is important to note that gambling should always be done responsibly and within one’s means.
If you are considering casino gambling as a way to make quick money, it is essential to understand the most profitable games and their strategies. Here is an ordered list of the best casino games to play to make money:
Blackjack: This game has one of the lowest house edges, making it a popular choice for professional gamblers. The objective of the game is to beat the dealer’s hand without going over 21. The key to winning at blackjack is to use basic strategy, which involves making the mathematically correct decisions based on the dealer’s upcard and your own hand.
Craps: This game has a low house edge and offers a variety of betting options. The objective of the game is to predict the outcome of a roll or series of rolls of the dice. To win at craps, it is essential to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
Baccarat: This game is easy to learn and has a low house edge. The objective of the game is to bet on the hand that will have a total of 9 or closer to 9. The key to winning at baccarat is to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
When playing these games, it is important to practice good bankroll management by setting a budget for yourself and sticking to it. It is also crucial to know when to quit to avoid losing money.
A winning streak can lead to making $1000 a day, but it is important to be cautious and not get carried away.
19. Freelance Graphic Design
Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They work on various projects such as branding, marketing materials, website design, and more.
Freelance graphic design is a lucrative option because there is always a demand for graphic design services, and businesses are willing to pay top dollar for high-quality designs.
By building a strong portfolio, staying up-to-date with the latest design trends, and providing excellent service to your clients, you can earn a substantial income as a freelance graphic designer.
20. Make Money Flipping Items
Flea market flipping is a great way to make some extra cash on the side or even turn it into a full-time business. It involves buying items for a low price and reselling them for a profit.
One couple, Rob and Melissa Stephenson, have become full-time flea market flippers and even host their own website, Flea Market Flipper, to help others find success in the venture. They offer several courses to help individuals turn this into a serious side hustle or even a full-time business earning six figures.
Learning from successful flea market flippers like Stephenson’s can be a great way to get started. They have the skills and knowledge to help individuals find valuable items, network, and use social media and photography to their advantage.
21. Photography
Photography is a lucrative career option that has the potential to generate high income or as a side hustle.
There are different types of photography that one can explore to make money, including wedding photography, family photography, real estate photography, and stock photography.
By building a strong portfolio, networking, finding clients, investing in high-quality equipment, and constantly improving your skills, you can become a successful photographer and make a great income. Don’t underestimate your potential in this field.
22. Rental Income
Passive income through rental properties is a great way to generate consistent long-term income. Here are the steps to follow in order to make $1000 a day through rent income:
Find a suitable property: Look for properties that are priced reasonably, require minimal renovations, and are located in areas with high rental demand. You are likely to start making $1000 a month.
However, the earning potential is dependent on the ability to scale multiple properties, keep them occupied, and increase monthly income streams.
Investing in rental properties can be a lucrative and rewarding experience for those willing to put in the effort.
23. Amazon Merch
Amazon Merch is a platform that allows you to create and sell your own merchandise on Amazon. It’s an excellent way to make money because Amazon handles all of the heavy lifting, such as printing, shipping, and customer service.
Using Amazon Merch, you can sell a variety of products from t-shirts to phone cases, and best of all, you don’t need to invest in inventory or equipment.
All you need to do is create the designs.
Successful Amazon Merch sellers include graphic designers, artists, and entrepreneurs who have created unique and appealing designs that resonate with their target audience.
24. Creative Skills like Video Editing
Creative skills can be a valuable asset when it comes to generating income. Video editing is another skill that can be monetized.
With the rise of video content, businesses, and individuals are always in need of skilled video editors. One can offer video editing services for YouTube creators, and businesses, or even edit personal videos for clients.
Freelance platforms like Upwork and Fiverr are great places to find video editing jobs.
25. Fashion Design
Fashion design is one of the most lucrative ways to make money, and it’s an industry that’s always in demand.
Whether you’re interested in starting your own fashion label, working for a fashion house, or becoming a freelance designer, there are plenty of opportunities to make a living in this field.
Marketing yourself is also key to success in fashion design. Use social media platforms like Instagram and Pinterest to showcase your work and build a following.
Networking is also an important part of building a successful career in fashion design. You must stay up-to-date on industry trends, make valuable connections, and potentially land new clients or job opportunities.
Create a website or blog where you can share your designs, offer fashion tips, and connect with potential clients.
Pay attention to industry trends, stay creative and original, and focus on developing your skills and building your brand. Then, there are plenty of opportunities to make a living in this exciting and dynamic industry.
26. Start a Blog
Many people say blogging is dead. But, it’s not.
Starting a blog can be a great way to share your interests, skills, and experiences with others while also creating a new income stream for yourself. The flexibility of blogging allows you to turn your current job or passion into a successful blog.
However, starting a blog can be challenging, and it requires technical knowledge, writing ability, social media skills, and topical expertise.
Once you have started your blog, it’s essential to treat it like a business and monetize your content.
27. Self-Storage Business
Self-storage business is a lucrative venture that involves renting out storage units to customers who need extra space for their belongings. These businesses are in high demand, especially in urban areas where living spaces are often small and cramped.
In fact, the self-storage business is expected to bloom to $64.17 billion by 2026.
Starting a self-storage business can be a profitable venture if done correctly.
28. Invest in Cryptocurrencies
Cryptocurrencies have gained popularity as a potential source of significant income. Bitcoin, Ethereum, and Litecoin are some of the best cryptocurrencies to invest in.
To invest in cryptocurrencies, one must first set up a digital wallet and choose a reputable exchange such as Coinbase or Bitstamp.
It is important to research the market and understand the volatility of cryptocurrency before investing. While the potential for high returns exists, it is important to approach cryptocurrency investing with caution.
29. Invest in Real Estate
Investing in real estate can be a lucrative way of making money.
To make $1000 a day through real estate investing, there are several steps you can take.
First, set aside a few hundred dollars each month to invest in real estate over time.
Second, consider the different types of real estate investments available, such as rental properties, commercial properties, and fix-and-flip properties. Each investment type has its own advantages and disadvantages, so it’s important to research and choose the one that fits your financial goals.
Third, consider investing in real estate investment trusts (REITs) or crowdfunding platforms like Fundrise, which allow you to invest in real estate without purchasing a property.
Remember that investing in real estate carries a degree of risk, so it’s important to do your research and seek advice from successful real estate investors.
30. Make Money on the Internet
Making money online has become a popular option for those looking to earn a substantial income. The internet provides a wealth of opportunities for anyone with an internet connection and a bit of creativity.
You need to learn how to make money online for beginners.
There are so many options today and you never have to leave your house!
When it comes to making $1000 a day online, it’s important to acknowledge that it’s not a quick or easy process. It takes time and effort to build a successful online business or generate significant income through freelance work or other online opportunities.
However, with dedication and hard work, it is possible to achieve your financial goals.
How to make $1,000 really fast?
If you’re in a financial bind and need to make $1,000 quickly, there are several options available to you.
Here are the top ways to make $1,000 a day quickly:
Sell items on eBay or Craigslist: If you have items that you no longer need, consider selling them online. This could include clothes, furniture, or electronics. This is a quick and easy way to make money fast.
Offer freelance services: You can offer services such as tutoring, design work, or writing. If you have a specific skill or talent, you can find customers online who are willing to pay for your services.
Do odd jobs for people in your community: You can offer to mow lawns, rake leaves, or shovel snow for a fee. This is a great way to make money quickly, especially if you live in an area with a lot of homeowners.
Participate in paid focus groups or surveys: This is a great way to make money quickly without leaving your home. Companies are always looking for feedback on their products and services, and they are willing to pay for it.
Rent out a room in your home on Airbnb: If you have a spare room in your home, you can rent it out on Airbnb and make money quickly. This is a great option if you live in a popular tourist destination.
Manage social media accounts: Many businesses need help managing their social media accounts, and they are willing to pay for them. If you have experience with social media, this could be a great way to make money quickly.
Start a blog: If you have a passion for writing or a specific topic, you can start a blog and sell advertising space or products/services to your readers. This takes some time to build up, but it can be a lucrative way to make money in the long run.
Sell handmade crafts or goods online: If you’re crafty, you can make items and sell them online, such as on Etsy. This is a great way to turn your hobby into a money-making opportunity.
Borrow money from friends or family: This is not an ideal option, but if you’re in a bind and need money quickly, consider asking for a loan from someone you trust.
Pawn items for cash: This is a last resort option, but if you have items of value, you can pawn them for cash quickly.
Don’t be afraid to try different methods and see what works best for you.
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
FAQ
Passive income is a form of earnings that is generated without active involvement.
It is a way to make money while you sleep and can provide financial stability and independence.
This is one of three types of income and the one you want to strive towards building.
Ultimately, the best side hustle for making $1000 a day is one that meets your needs and interests while providing a good return on investment.
Here are several factors to consider before choosing the best option.
Think about your skills, interests, and availability. If you have a full-time job, you may want to consider a side hustle that allows you to work flexible hours.
Next, consider the earning potential of the side hustle you are considering. Some side hustles pay more than others, and you want to choose one that will give you the highest return on investment.
Additionally, consider the start-up costs associated with the side hustle. Some require significant investment, such as buying a car for ride-sharing apps or purchasing an online course.
Most importantly, choose a side hustle that aligns with your passion and expertise. This will make the work more enjoyable and increase your chances of success.
There are many ways to make money from your expertise.
You can start a consulting business, offer services such as coaching or speaking, create and sell information products, or build a following and sell advertising or sponsorships. The possibilities are endless.
What’s important is that you start somewhere and then take action to turn your expertise into cash.
Ready to Make 1000 in a Day?
There are many ways to make money quickly and easily.
The best way to make money fast is to find a way that best suits your skills and interests.
Whether it’s graphic design, content creation, photography, or trading stocks, there are plenty of opportunities to turn your passions into profit. So, start honing your skills and explore the endless possibilities of the gig economy.
Learning how to make quick money in one day is possible. You just need to be determined and disciplined.
So, which method do you choose on how to make $1k a day?
Know someone else that needs this, too? Then, please share!!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The ripple effect of a financial mindset can be seen in every aspect of your life.
Think about it: If you are not mindful of how you spend and save money, then you will be in a constant struggle each and every month.
If you are simply someone who is struggling to make ends meet, there are many things we can do to save money. If you are trying desperately to reach financial freedom sooner, then you need these best money hacks to make it happen sooner.
Around here at Money Bliss, we spend a lot of time on our money mindset and setting goals.
Everyone is in a different season with their finances.
But, one thing is true… Most of us never learned proper money management.
Do you find yourself in a constant cycle of financial struggle? Do you feel like you are constantly trying to live up to unrealistic standards?
It is easy for people to feel that they are constantly broke, and in some cases this is true. But, it is also important to remember that there are ways in which you can make more money and start saving for your future.
Since changing money habits does not always come easy and often requires some serious changes in our mindset, we are here to support you to find the top money hacks.
Read on as we share 50+ ways you can start saving more money as well as making more money while also saving your sanity!
What are Money Hacks?
Money hacks are the ways in which people stretch their money.
These money hacks can come from a variety of sources, such as personal experience, family members or friends, and other individuals on social media.
Money hacks can come in many forms such as:
Simple money saving hacks
Ways to make money on the side
Strategies to make every dollar count
Thrifty ideas to be more frugal
Ideas to be more conscious of our waste
All in all, money hacks will help you to spend less money. Thus, saving more money.
As you will learn at Money Bliss, saving money opens up doors of opportunities
Best Money Hacks
Money hacks are ways to build long-term wealth.
Even though most of the hacks for money include quick saving wins, over the long term, you will actually start a snowball effect of more money in your bank account.
Sometimes, it can be difficult to find the motivation to save money, but these 7 best real money hacks will help you reset your financial mindset and start saving!
The best money hacks are the overarching big picture concepts that you must master for long-term success.
1. Think Big
Open up your mind.
One way to reset your financial mindset is by opening yourself up to new ways of thinking about spending and saving.
Too often, we are focused on what is directly in front of us instead of thinking about the big picture.
A great way to think big with your finances is to decide how you want to live life with intention.
2. Habit of Saving Money
Get back in the habit of saving.
If you have been beyond your means or barely scraping by, the best way to get back on track is by saving at least 20% of your income.
This may seem a little ludicrous. However, by prioritizing saving first, you will be pleasantly surprised how well you live off the rest.
In this post, there will be so many simple and easy ways to start saving today.
3. Make a Plan for Your Money
Create a spending plan (aka that dreaded word budget).
Creating an outline for what you want and need will help you to make smarter decisions about your spending.
This concept has been made too difficult over the years.
The bottom line is you want to spend less than you make. So, make a plan for that to happen today.
4. Make Money on the Side
This one is huge!
Personally, making extra money has been a priority for the last 5 years. We spent many years trying to cut our expenses and hating our inability to actually spend less as a growing family. So, we changed our focus to finding ways to make more money instead.
Start a side hustle. If you are not making enough to live comfortably, start a side hustle! Use your unique skill set to make extra cash.
Pick up a second job or ask for more hours.
There are plenty of ways to make money fast.
5. Invest in Stock Market
This means a way to make money or increase your net worth. AKA make your money work for you.
Too many times, the concept of investing is big and scary. The thought of starting is way too overwhelming. So you put it off until next week or next month. Then, a couple of years go by and you have not invested your money.
That is the biggest financial mistake you can make.
Start small by investing in an index fund. Each month consistently add more money.
If you want to learn to trade stocks, then you must enroll in the best investing course I have found.
Read my in-depth investing course review.
6. Pay Off Debt
Ugh… debt is the cash flow killer.
You are unable to make forward progress if you are straddled by debt.
Figure out how to pay off debt ASAP.
When calculating how long it will take to pay off high-interest debt, you should consider paying the highest interest rate first. Here is the best debt payoff app available.
7. Watch Your Spending
Be mindful of your spending.
This is a great practice that many people need to start doing again, regardless of how much money or how little money they have.
Every few months, you need to evaluate your spending to see if it matches up with your values.
As you can imagine there are many money hacks that can help you save, but the list above is the money hacks that will make the biggest difference the quickest. Below we have many more money hacks for you to explore.
Hacks for Saving Money
Money app hacks are small, quick, and easy ways to improve your finances.
They can range from things like automating your budget or creating a money jar that pays for itself, to more complex solutions like changing your tax withholding or moving money around to get a higher return.
Honestly, there are so many life hacks for saving money.
8. Automatic Savings
This is a practice of automatically transferring money from your checking account into your savings account on a regular basis.
It is best to set a transfer amount and stick to it.
Since it is easier to save your money before you spend it, you must save as much money as possible in order for this strategy to be effective.
9. Financial goals
A financial goal is a long-term, quantifiable expectation for how much money you want to have, or what you plan on doing with your money. Your goals can be as simple as saving for the down payment on a house or as involved as saving for retirement.
Our financial goals allow us to set specific, numerical targets that help us achieve our desired lifestyle in a more concrete way.
You must set smart financial goals.
10. What brings you joy?
At the end of the day, it is important to remember that life is all about finding what brings you joy.
The question is open-ended, but your money must line up with what brings you joy.
Spend a few minutes and stew on the question.
11. Build an emergency savings fund
Building an emergency savings fund is a great idea if you are in the habit of saving money and want to make sure that you have some money saved up when times get rough.
If you are struggling to save, there are a few ways you can increase your savings.
For example, you might be able to set up automatic transfers from your checking account into an investment account. You should also make sure that you have a way to save money outside of your checking account.
Saving cash in a jar or saving up coins are ideas for some people.
12. Invest spare change
If you go shopping and buy something, most stores will give you change. If you use a debit or credit card, you can do the same thing with help of a popular app!
Simple money hack: investing your spare change.
In order to invest your spare change in an account, you can open one for as little as $5. Acorns then automatically invest the money from your checking account and into a savings acorn account.
As the round-up feature continues to add upon each purchase, it is a good idea to invest in this app so that you can save more dollars!
13. Challenge Yourself to Save
If you are looking to save money, it is best to set up a budget that includes challenging yourself.
A great way to do this is with the no spend challenge.
A no-buy is when you decide to simply not make any purchases for a certain amount of time.
A no-spend is when someone decides to not spend any money in a certain period of time.
When you are struggling with spending too much money and want to reset your wallet, then give up spending money. Period.
14. Join a buy nothing group
The buy nothing groups are a growing movement that started in order to help people cut their ecological footprint, save money, and break free of consumerism.
This is a great way to find things you need as well as declutter your house.
15. Negotiate everything
The key to successful negotiation is preparation.
Research the company’s past sales, price changes, and discounts offered in order to get a better understanding of what you’re negotiating for.
Don’t be afraid to negotiate.
What is the worst thing that can happen when someone says no!?!
16. Refinance Your Mortgage
It is never too late to refinance your mortgage.
In fact, it might be a good idea if you’re in the market for a new home or refinancing your loan on an existing property.
You must weigh the costs of refinancing to how much you will save over the time period of the loan.
Ask around for mortgage broker recommendations and get at least two quotes.
17. Downsize your Home
Downsize your home is the term for reducing a residence in size. This can be done by either moving to an apartment or buying a smaller house. There are many benefits of downsizing, including living a more affordable lifestyle and having less upkeep.
Downsizers use their homes as investments and save money on rent or mortgage payments.
18. Cut the cord
With the internet becoming accessible to everyone, people have started cutting their cable and watching shows online. People can save up to $500 a year by cutting cable from their bills.
Cut the cable & stop watching TV!
19. Learn about Finances
Ask for help.
If you are struggling, there is no shame in asking for assistance from your friends or family members.
The goal is to get ahead with money and not keep digging further into a hole.
Check out any of our courses to help you.
20. Save for What You Want
Decide what you want most and work towards it with the money you have now, instead of waiting for a windfall or a large inheritance.
This may mean setting aside $200 a month.
For example, as a reminder of your long-term goal of buying a beach property, you may buy something you would hang in the new place. Every time you see it, you will be reminded of what you are saving towards.
Budget Hacks
Financial hacks are not unusual.
Since it is so easy to overspend, you must know a few budgeting hacks ahead of time.
21. Need vs Want
A want is a desire for something, while a need is something that fulfills the requirement of your body like food or shelter.
When you think about buying something, ask yourself if it is a want or a need.
By uncovering needs vs wants, you are quickly able to find ways to spend less and save more.
22. Avoid Temptation
To avoid temptation, it is important to maintain a healthy amount of physical and emotional distance from the things that tempt you.
Sometimes, spending triggers are easy to avoid but other times they’re not.
However, people should always be aware of their temptations and try to stay away from them because it will lead to unnecessary debt or stress in the long run.
23. Practice the 30-day rule
Many people wonder what’s the 30 day rule with money…
The 30-day rule is the principle that states that you should practice a new habit or stop an old habit for at least thirty days before expecting success.
When it comes to your money, it means to wait thirty days before making big purchases or changes.
24. Keep a Budget Binder
A budget binder is an important tool that helps people keep track of their finances.
The binder can help people plan out their finances by providing a place to record expenses and income.
Keeping a budget binder is an effective way to track your spending and keep yourself accountable.
By keeping it, you can easily plan for future expenses in advance as well as see what money could be saved or spent on different items over time.
25. Get a spend tracker and use it regularly
Track your spending for 30 days. It can be a good idea to track your spending for at least a month to get an idea of what you’re spending and where.
A spending tracker is a tool that helps people keep track of how much they are spending on a certain item. It is important to use this tool regularly in order to be able to see patterns in your spending.
Then, review your spending. Share it with a trusted friend or family member to come up with some goals to reduce expenses in order to save money.
26. Create a budget
Create a budget, and follow it.
When you schedule your spending, make sure to leave room for savings. This is the easiest way to ensure that you can stick to your budget.
Find more budgeting resources on our site.
27. Pay Bills on Time
This should be a simple statement that we all know. However, life can throw curveballs.
Try to pay your bills on time and in full every month, and make sure all of your bills are paid each month.
This will show lenders that you are responsible and that you are taking care of your credit. Plus you don’t rack up those pesky late fees and high interest rates.
28. Avoid Missed Payments
Don’t miss any payments, and pay off your balances each month to avoid paying high interest rates or fees on late or missed payments.
Read again… do not miss paying your bills.
29. Reconcile Your Checking Account
Balance your checkbook monthly. Okay, no one really uses a checkbook anymore, but you can still do this with pen and paper.
Even better, use Quicken as a simple way to balance your checking account. Read my Quicken review.
This is a great way to check for being charged too much or find a subscription you don’t use anymore.
30. Avoid Summer Budget Busters
Avoid spending money for the summer by just being conscious of your spending and reviewing what is different than the norm.
It is too easy to get into the trap of spending money because the weather is warm.
31. Review your Credit Card Statements
If you’re like most people, you probably review your credit card statements once every six months.
What’s the best way to go about reviewing them?
It depends on how often you use your credit card, how much debt you have, and what your credit score is. You should review your statements at least once a year if you’re carrying a balance on your credit cards.
If you use your credit card, then you should review your statements at least monthly.
32. Use the Cents Plan Formula
While the 50/30/20 budgeting rule is popular, our method of budgeting your money will be more helpful.
Learn how to divide your income into various categories.
Check out the Cents Plan Formula.
33. Use Cash
Use cash instead of credit cards to spend, which will make it easier to limit yourself to how much you can spend.
The envelope system helps you save money by only spending from one designated cash stash each month and withdrawing a set amount for different types of expenses (like groceries).
34. Spending Freeze
Implement a spending freeze, which helps you get used to not buying things for an allotted time so that when the freeze is over, it’s easier to buy what you want.
You will be surprised how much random online shopping you do.
Begin your spending freeze now.
35. Use a Budgeting App
Use your bank’s budgeting tools, like Quicken, which can help you track how much money is coming in and out of your account.
This is the simplest way to manage your money wisely.
Using a money app or a personal finance website can help you to stay organized and get more creative about your budgeting.
Check out this list of the best budgeting apps available.
Hacks to Make Money
Hacks to make money are a list of ways to generate income for yourself. Many ways to make money include blogging, affiliate marketing, or day trading. These money making hacks are great, but they can take more time and energy invested.
36. Use cash back apps
Cash back reward apps like Ibotta are a way to get extra money for your purchases.
They take some time getting used to and you only have access to partner stores that offer cash-back offers. It only takes a few seconds to make some extra cash.
Check out the best cash back apps available.
37. Ask for a Raise
A raise is an increase in pay for a job, labor, or service.
If you are concerned about asking for a raise, then you are missing out on lost money.
Your boss may be receptive to it, then try negotiating more money. Not only will this be good for your career, but also the relationship between you two can improve as well.
38. Get a side hustle
A side hustle is an additional job or career, usually, one that requires only a small amount of time and effort.
For example, someone who wants to work on the weekends might start a side hustle as a bartender.
Side hustles are a form of entrepreneurship that allows you to earn money and do little tasks. They are not difficult or time-consuming, but they can still help you make extra cash on the side.
Pick one of the best gig economy jobs.
39. Rent out a part of your home
A part of your home is often a room, which can be rented out on Airbnb.
Airbnb is the largest and most successful company in the world that lets people rent their extra space or properties. They are a well-known company that provides an easy way for people to make money from their extra space.
Use Neighbor to lend out your space in your home.
40. Declutter: sell your junk for cash
Decluttering is the act of getting rid of excess or unnecessary items.
In order to declutter, you must be willing to give up something that has been a part of your life for a long time. It is important to remember that decluttering does not have to be a quick or easy process.
Then, sell your stuff on Facebook Marketplace, Nextdoor, eBay, etc.
Learn more at Flea Market Flippers.
41. Earn Money While Watching TV
Although it is not a fast way to get rich, this can be used as a side hustle.
It’s better to use the money earned from watching TV or something else that takes up your time for other things like bills and groceries.
Survey platforms are online sites that allow people to earn money while watching TV.
The survey platform will send surveys through the mail or email, and then they can choose whether they want to take the survey for a set reward amount or if they would like cash back on their purchase.
One of these options is MyPoints, which allows users to earn points by completing tasks such as taking surveys and shopping online at specific retailers.
Others include:
42. Maximize Your Income
Find ways to increase the amount of money you bring in, whether that’s through a side hustle, increasing hours at work, or asking for a raise.
In today’s society, there are plenty of ways to make more money.
Only you put a limit on what you are capable of earning.
43. Build Your Credit
Building your credit can be a long process, but it’s worth the effort. If you’re trying to establish or improve your credit score, here are some tips that might help:
Try to keep your credit utilization rate below 30% at all times.
Do not open too many new lines of credit in a short period of time.
Pay your bills on time.
This will help you avoid damaging your credit score.
Hacks for Free Money
Hacks for free money are a form of fraud wherein the perpetrator solicits payment via PayPal, credit card, or other methods in exchange for access to what they promise will be a legitimate business opportunity.
Hacking free money is a way to make more cash, fund your financial goals, or help you pay off debt. There are lots of ways that people hack their finances and use cash back apps for some extra income.
Other options include signing up for bank bonuses or credit card bonuses.
Honestly, real free money hacks are more likely to be scams. So, beware when searching online.
Money Hacks in the Kitchen
You can save the most money by looking at what you eat.
Typically, people waste over 25% of their grocery budget and throw out food. Would you willingly throw out $250 a month? Probably not.
So, learn how to stretch your money for food.
44. Start meal planning
Meal planning is a money-saving strategy that can help in the long run. It’s also important to eat healthily and reduce food waste when meal planning.
But planning ahead will help save on the grocery budget, and it’s not too late to start now.
Start meal planning by deciding what you want to eat for each day. Then, make a list.
45. Say no to prepackaged foods
Packing your lunch for work or school can be time-consuming, especially if you have a family.
Some people prefer to buy prepackaged foods because they save time, but this is not always the best option.
A better choice is to make your own food at home and pack it for lunch, which you can then eat in peace without worrying about what other people might be saying about the food you packed.
46. Eat at home
Eating at home is a way to save money. It may be uncomfortable for those who do not enjoy cooking as it requires extra effort and time.
Instead of getting food at restaurants, consider cooking your favorite meals at home.
You can save money and time by eating the same meal over and over again.
Learn about the frugal home must haves.
47. Grow your own herbs and food
The most common methods of gardening include container gardening, hydroponics, and both indoor and outdoor gardening.
Many people are growing their own herbs and food for the satisfaction of being able to eat something that was grown with their hands.
48. Take your lunch
If you are interested in saving money, consider taking your lunch. This will save you up to $1,000 a year on work lunches and make it easier to meet the recommended daily intake of fruits and vegetables as well.
“Take your lunch” is an invitation to eat at home. There are many benefits of eating out less often, such as saving money and gaining more control over food choices.
Travel Hacks to Save Money
The following are travel hacks that can help you save money on your next trip.
Some of these hacks include traveling during weekdays, using public transportation, staying at hostels and Airbnb instead of hotels, and using a travel credit card.
49. Use foreign websites for lower prices abroad
Foreign websites are websites that have been created by people from other countries, and they sell products in the language of their country. These websites often offer lower prices on products than what is offered in the United States.
If you’re traveling abroad and need to find a place to stay, there are plenty of websites that can help. A few websites have deals on places where travelers often stay while they travel internationally.
50. Stay for free or get paid to house sit abroad
A house sitter is someone who looks after someone’s property for a certain amount of time in exchange for the promise of payment.
House sitting is typically offered by homeowners to travelers and others who are looking to stay in a particular location for an extended period of time.
The main types of house sitting include:
– full-time house sitters, who are responsible for all aspects of the house and who are typically paid a monthly salary,
– part-time house sitters, who may be responsible for taking care of one or more specific tasks such as gardening or handling the mail
51. Hide your search
To avoid being taken advantage of by airlines, it is best to open a new incognito or private window between searches.
This will make sure that you are not tricked into buying tickets that may be significantly more expensive than they need to be.
Airlines use cookies in your browser to make you believe the prices are going up and up.
Money App Hacks
Money app hacks are ways that people have figured out to make their money work for them in terms of saving and spending. These apps offer different features, such as budgeting, tracking your spending, and saving money.
If you want a simple way to save money, then any of these money apps are designed to find excessive spending.
52. Billshark
This is a legitimate way to save money on monthly bills. Billshark offers you the opportunity to save up to 25% each month (when compared with regular bill payments).
All of this can be done for you by BillShark team, and there are no fees involved!
Try Billshark for free!
53. Trim
Review your spending habits to find what you can cut out, like subscriptions.
Find other ways to save by looking for ways to reduce costly bank fees or getting a discount on your cell phone plan. By using Trim, you are saving money and improving your financial health.
Sign up with Trim now.
54. Truebill
Truebill can help you to track your spending, save money and get a clear picture of your financial life.
This helps you identify services that you are no longer using but continue to pay for. It will help save money by automatically negotiating prices with your service providers and receiving a refund of the money going to waste, which is free money.
Get started with Truebill.
Which Life Money Hacks Can You Start?
This is a lot to take in, but don’t worry.
Take the time to read through each suggestion and consider how you can implement it into your life.
The more hacks you try out, the closer you’ll get to a healthy financial mindset.
These are the life hacks to save money I have found to work for me and my family in order to reset our financial mindsets and grow our net worth.
Everyone will find their niche and what will work best for them.
Personally, you need to figure out how do I make more money. That will make the biggest impact the fastest.
What have you done with your money lately?
Know someone else that needs this, too? Then, please share!!
The gig economy was just beginning to blossom pre-pandemic. Between 2010 and 2020, the number of gig workers or side hustlers increased by 15%. Unlike many aspects of life, which stagnated during the pandemic, freelancing only grew. Statista reported that 73.3 million people work as freelancers in the U.S. right now, an increase from 57.3 million pre-pandemic.
Freelancing has tremendous benefits for many people. Freelancing or gig work can provide:
Flexibility
A better work-life balance
Increased income potential
But it can come with some financial complications, too.
As a freelancer, you’ll need to manage cash flow so that you’ll have money in your account to pay your bills. You’ll be responsible for paying your own taxes. And, with that in mind, you’ll want to track expenses carefully so that you can deduct the costs of running your freelance business from your bottom line.
That’s where having a business bank account can come in handy.
Why You Need a Bank Account If You Have a Side Hustle
According to tax laws, you don’t have to have a business bank account to run a side hustle or a freelance business. You can file your taxes using your Social Security number and receive a 1099 form as a sole proprietor.
But as your business grows, you may want to incorporate under a tax ID number. You may choose to register as a corporation like an S-Corp or, more commonly, a limited liability corporation or LLC. This can get confusing, so it’s important to speak to a tax account before you take this step.
If you incorporate your business, you’ll need a business checking account to keep your personal finances separate from your business expenses. You would pay yourself a salary out of your business account and use your personal bank account to pay for your daily living expenses, entertainment, and anything that isn’t considered a business expense.
Benefits of Business Accounts
Most small business owners, freelancers and side hustlers prefer to open a business account even if they aren’t incorporated. Having a dedicated business checking account makes it easier to track your business income and expenses, which makes filing taxes – and making quarterly estimated tax payments – easier. If you ever get audited, you’ll have a clear record of your personal and business finances.
Plus, if you do any sales and marketing for your freelance business, your business debit card can often pique people’s interest. You’d be surprised how having a debit card with your business name on it can help you generate leads in odd places, whether you’re at your favorite bar or paying for groceries.
If you’re ready to open a separate business account, it’s important to find one that will meet your needs.
Freelancer vs. Side Hustler vs. Entrepreneur
Before you choose a business account, you may be wondering about the differences between entrepreneurs, freelancers, and side hustlers. Which category do you fit in?
These are all loose terms to describe anyone who owns their own business or is self-employed. Self-employed is a tax designation, which means you are a 1099 contractor for other companies. This term would apply to most freelancers and side hustlers.
On the other hand, if you start your own business, you might consider yourself an entrepreneur. The dictionary defines an entrepreneur as someone who starts a business and is willing to take a financial risk in hopes of great success.
A freelancer may also take financial risks, including leaving a steady paying job. In a lot of cases, whether you describe yourself as an entrepreneur, small business owner, freelancer or side hustler is up to you.
Compare the Best Freelancer Checking Accounts
In most cases, business owners, freelancers and side hustlers can all benefit from a good business bank account. Read on as we compare the best business checking accounts for freelancers, gig workers, and entrepreneurs.
1. Lili Bank: Overall Best Bank for Freelancers
Lili calls itself “the one-stop shop for all your small business financial needs.” An online financial services company that provides business banking, accounting for freelancers, invoicing, and tax support, Lili is backed by Choice Financial Group Inc.
As a US-based bank, Choice is a member FDIC, which means your funds deposited in Lili are protected by the federal government up to $250,000 per account.
What sets Lili apart as one of the best bank accounts for freelancers?
In addition to all the other services it offers to business owners, Lili has no minimum balance requirements, no monthly fees for basic checking, and a network of 38,000+ fee-free ATMs nationwide. You can also open a business savings account and earn 1.50% APY at Lili.
Lili’s basic business checking account has no monthly fee, expense categorization for your purchases, and the ability to generate quarterly expense reports.
Alternatively, for $9 per month, you can earn 1.5% on savings, get a Visa business debit card with cashback rewards, overdraft protection up to $200 and tax, invoicing software, and accounting support.
Lili integrates with third-party services that gig workers may use, including Etsy, Shopify, Venmo, QuickBooks, and your PayPal business account.
When you compare the prices of other invoicing and online accounting services, you may find that Lili offers tremendous value for the money as one of the overall best banks for gig workers you can find.
Bluevine: Best for Business Interest Checking Account
Like Lili, Bluevine is a financial technology company. It is backed by Coastal Community Bank, Member FDIC to protect your deposits. The Bluevine business checking account offers 2.0% interest, which sets it apart from competitors.
To take advantage of the interest, you’ll need to either spend $500 per month with your Bluevine Business Debit Mastercard or receive $2,500 per month in customer payments to your Bluevine business checking account.
There are no monthly fees or minimum balance requirements and you can make unlimited transactions with no fees. Like Lili, Bluevine also offers other services for business owners.
If you are looking for a business interest checking account with value-added services, consider Bluevine. Your account integrates easily with QuickBooks, with no fees involved. Plus, you can set up sub-accounts to easily manage your money, add authorized users, and pay bills via ACH or wire transfer from your Bluevine account.
While many credit providers offer business credit cards, Bluevine is one of only a few business checking accounts that offers a business line of credit. You may qualify for a credit line of up to $250,000, with a rate as low as 6.2% interest. This interest rate is much lower than the national average of 20.46% for business credit cards right now, as reported by The Balance. Plus, you could get approved in as fast as five minutes, according to the Bluevine website.
For entrepreneurs seeking to purchase tools or resources, or freelancers in need of business equipment, Bluevine’s line of credit could provide you with the financial security you need to grow. Take note that you’ll need a credit score of 625 or more to qualify and $40,000 in monthly revenue. This is probably not a service for a gig worker, but for a seasoned entrepreneur.
Even so, it’s never too early to get started with a business checking account, especially one with no monthly fees.
Amex: Best for Debit Card Rewards and Bonus Offer
American Express is a renowned name in business and consumer rewards credit cards. But you might not be aware that the company also offers a business checking account with 1.30% APY on balances up to $500,000.
American Express also has no monthly maintenance fees, no fees on domestic ACH payments, and no fees at MoneyPass ATMs. The American Express Business Blueprint app makes it easy to manage your account.
Amex stays true to its credit card rewards roots with a rewards business debit card. Earn 1 Membership Reward point for every $2 on eligible purchases. You can combine points earned with Membership Rewards points accrued with other Amex cards, and use those points for travel, gift cards, or cash back. You can also convert those points into cash deposits directly into your new business checking account.
Amex’s bonus offer stands out to us. Earn 30,000 Membership Rewards points after you deposit $5,000 or more within the first 30 days of account opening, maintain that balance for the next 60 days, and make five or more qualifying transactions within those first 60 days.
NBKC Business Checking: Best for No Fees
If finding a business bank account with no fees is most important to you, a nbkc Business Checking account might fit the bill. The bank offers unlimited transactions with no fee, no minimum balance requirements, no monthly fees, and no opening deposit requirements either. You can also have out-of-network atm fees reimbursed for up to $12 per month.
If you are a freelancer just getting started or just looking to supplement your full-time income with a side hustle, you’ll find nbkc bank a low-cost and convenient option among free business checking accounts.
NBKC lacks some of the bells and whistles of the top choices on our list. You won’t get integrations with common business software or invoicing and accounting support. But a nbkc business checking account is free with your personal account and provides an easy way to keep your business and personal funds separate.
Novo: Best for Payment and P2P Money Transfer App Integration
Novo is another choice with no monthly maintenance fee, no monthly fee, free ACH transfers, and no minimum balance needed. Like many of the business bank accounts on this list, Novo is a financial technology company. It’s backed by Middlesex Savings bank, a Member FDIC, which means your money is protected up to $250,000 per account.
Novo is the best for business owners looking for an easy way to process payments or transfer funds. You’ll get free ACH transfers from another checking or savings account and refunds on all out-of-network ATM fees.
Novo integrates with many P2P payment apps, including Square, Shopify, and Stripe, as well as Etsy, eBay, Amazon and more.
When you use Novo Boost, you can get paid 95% faster through Stripe, or two business days before the funds would ordinarily appear in your account.
Plus, it’s quick and easy to open an account online, with approval as fast as 10 minutes – rather than days with some other online bank accounts.
Axos Bank: Best for New or Scaling Businesses
Many freelancers don’t think about opening a business account until they have incorporated their company to make that transition from self-employed to entrepreneur. If this sounds like you, Axos Bank could have the best bank accounts for you. The online bank is offering business owners who incorporated after June 2020 an extra $200 in their new business bank account.
If you aren’t newly incorporated, you can earn a $100 bonus.
Like many of the best business accounts on this list, Axos has no monthly fee, no minimum monthly average balance to hold, ATM fee reimbursements for all domestic transactions, and no minimum opening deposit. The bank accepts cash deposits or you can transfer money from other checking accounts via ACH.
Unlike many online banks, Axos offers business owners a dedicated relationship manager to help point you to the products and services that are best for your growing business.
Chase Business Complete Banking: Best for Credit Card Processing
As the largest U.S. bank, with assets of $3.31 trillion, Chase is a traditional bank that offers all the convenience of online banks. This includes personalized service, stellar fraud protection, and a host of other features and benefits we’ve come to expect from any financial institution.
The Chase Business Complete Banking account is ideal for entrepreneurs, offering unlimited transactions and no monthly fee (if you meet certain requirements). These requirements are relatively easy to meet with a $2,000 minimum balance, $2,000 in purchases on your Chase Ink Business credit card, a link to a Chase Private Client Checking account, or $2,000 in deposits from QuickAccept or Chase eligible merchant services.
The best aspect of Chase Business Complete Banking is the ability to process credit card transactions and receive funds the same day through Chase QuickAccept. (Additional fees apply.)
You can open an account with no minimum deposit to get started.
Wave Money Business Banking: Best for Free Business Banking
Wave Money integrates a free checking account with easy bookkeeping for freelancers and solopreneurs. Wave is best for those who want to improve cash flow with instant pay and want bookkeeping tools to make tax prep easier.
Wave has no monthly fee or transaction fees, so you keep more of what you earn. You can use the mobile check deposit feature for convenience, and make ACH transfers easily. There are no transaction limits with Wave, and you can also connect third party payment processors.
Wave is another fintech company, with banking provided by Community Federal Savings Bank, Member FDIC. That means your funds are insured for up to $250,000 per account.
TIAA Bank: Best for Business Investments
Besides checking accounts, TIAA Bank offers a variety of banking products for entrepreneurs and gig workers that sets it apart.
If you’re considering business savings accounts, TIAA offers CDs and money market accounts to earn interest at a rate higher than you may get with another account. Currently, TIAA’s one-year business CD offers an APY of 3.75%.
TIAA’s checking accounts offer easy online banking and mobile check deposit, along with personalized service from a business solutions specialist.
LendingClub Bank Tailored Checking: Best for Earning Checking Account Rewards
The LendingClub Bank tailored checking account for freelancers is one of the few banks on our list where you can earn interest on your checking balance, plus 1% cash back rewards when you use your debit card.
Account holders earn 1.5% APY on balances up to $100,000 and 0.10% APY on the portion of your balance that exceeds $100,000.
LendingClub Bank reimburses fees if you use an out-of-network ATM. The bank also supports QuickBooks, Quicken and Mint for budgeting and bookkeeping. You can also send digital invoices and get paid directly to your LendingClub account, making LendingClub Bank Tailored Checking one of the more robust and affordable online banks for freelancers.
Just make sure to maintain an average daily balance of at least $500 to have the monthly fee waived.
How to Choose the Best Bank Account for Your Business
When you’re evaluating business bank accounts, you’ll want to consider your needs and the features that are most important to you.
It should go without saying that you want an account with no monthly fees or no monthly fees. Unless you’re an established business owner, you may also want no minimum balance requirements. You don’t want to get saddled with fees if your business runs into cash flow problems or you have a down month.
If you run a high-volume business, look for a bank account with no transaction limits, no in-network ATM fees, and unlimited ATM fee rebates.
Need a way to manage contracts, collect invoices, and help with taxes?
Your business bank can represent much more than just a place to deposit cash and a means to pay your bills. Many of the best bank accounts on this list also offer freelancer invoicing, tax assistance, and ways to manage contracts.
Budgeting and Savings Features to Look For
When you’re a freelancer, it’s convenient to have an easy way to track your expenses and budget for not just expected costs, but surprise opportunities or financial emergencies.
Just as you should have a personal bank account established with emergency savings, you want a business savings account. In fact, you may want multiple business savings accounts or the ability to divide money into various buckets for known costs – like taxes – and unexpected expenses, such as car repairs or a new phone.
Some budgeting and savings features are nice to have, such as an interest-earning checking account and cash back on debit card purchases.
Why We Chose Lili as the Best Business Bank Account
Lili graces the top of our list because the fintech company offers so many value-added services for entrepreneurs that it’s virtually a one-stop shop for freelancers. However, the other banks on our list for best business accounts have their own benefits you might want to consider.
Should You Use Different Banks for Personal and Business Finance?
If you already have a separate bank account for your personal finance, there is something to be said for opening a business account through the same bank. You may get extra perks and benefits or waived fees. Best of all, it’s easier to use one app to manage all your personal and business banking.
But if you opt for an online financial services company, instead, it is typically easy to transfer funds between accounts. Also, companies like Lili and Bluevine specialize exclusive in business accounts, which means they have services tailored specifically to your needs.
Bottom Line
A lot of factors go into choosing the best bank account for your business checking needs. Knowing your must-haves, nice-t0-haves, and those features that don’t really matter to you can help make the decision easier.
FAQs
What is a business bank account?
A business bank account is a dedicated account separate from your personal accounts that you use to deposit cash, checks, or other customer payments earned through your business. You should also use your business checking account to pay for business expenses.
Do You Need a Business Bank Account if You’re a Freelancer?
Freelancers are not required by law to have a separate business banking account. But if your business is incorporated as an S-corp, C-corp, or LLC, you are required to keep your business and personal accounts separate.
Should You Have a Separate Bank Account If You’re a Freelancer?
Even though it’s not required by law, it’s a good idea to have an account separate from your personal checking account to help you keep track of business income and expenses.
What Makes a Business Bank Account Ideal for Freelancers?
Business bank accounts often have many of the same features as some of the best personal bank accounts. That would include low or no minimum balance requirements, no monthly maintenance fee, no transaction fees, and no hidden fees.
You may also look for features like mobile check deposit, unlimited electronic deposits, and low wire transfer fees if you have a lot of customers, clients, or vendors outside the U.S.
Methodology: How We Select the Best Bank Accounts for Freelancers and Side Hustlers
We evaluated the best bank accounts for freelancers based on the ability to earn interest, monthly maintenance fees, minimum balance requirements, the ease of making cash deposits, customer service, and more.
Some banks are better for freelancers who don’t maintain a high balance or only have a few transactions per month. Entrepreneurs with fast-growing businesses looking to scale may prefer a business checking account with unlimited transactions and the ability to accept credit card payments through the same bank.
Some business owners may want to be able to integrate their Quickbooks accounting system through their bank.
We have banks on this list designed for small business owners, freelancers and side hustlers at every stage of business growth.
Do you want to make money driving for Instacart? This Instacart Shopper Review will show you how it works and how much money you can make delivering groceries.
Instacart is a popular website for people looking to earn extra money as shoppers and grocery deliverers. Acting as a middleman between customers and stores, Instacart allows you to turn your free time into a chance to make some extra money.
As an Instacart shopper, you can enjoy the flexibility of choosing when and where you want to work, making it an attractive option for those with busy schedules or seeking gig work opportunities.
Before deciding if you want to become an Instacart shopper, there are some things to think about. And, you may have some questions too.
In this Instacart Shopper Review, we’ll dive into an in-depth review of what it’s like to be an Instacart shopper, from shopper requirements and the sign-up process to tips for increasing your earnings and efficiency.
This information will help you make an informed decision about whether becoming an Instacart shopper is the right side hustle for you.
You can click here to sign up to be an Instacart Shopper.
Key takeaways:
It is easy to get started as an Instacart shopper.
The flexibility of being an Instacart shopper provides an opportunity to make extra money. You can choose your hours and there is no minimum you have to work.
Maximizing earnings and efficiency is essential for success as an Instacart shopper so that you can make the most money per hour.
There is no compensation for car maintenance or gas expenses. You are driving your own vehicle.
Instacart Shopper Review
What is Instacart?
Instacart is a grocery delivery service that allows you to view, select, and purchase products from a variety of stores online or through their Apple and Android apps. As a user, you can place an order for groceries, and an Instacart Shopper will fulfill your order and deliver it to your doorstep.
I have used Instacart many, many times in the last couple of years. The service has made my life so much easier, because sometimes I simply don’t have time to run to the grocery store or I may simply not have a car (such as when traveling).
Instacart is available in the United States and Canada.
Related content:
What is an Instacart shopper?
As an Instacart shopper, your main responsibilities include shopping for and delivering groceries to customers from stores like CVS, Publix, and Kroger. The amount of money you can earn depends on factors like order size, tips, and the distance traveled for deliveries.
To become a Instacart Full-Service Shopper, you’ll have to meet basic requirements such as:
Be 18 or older
Have a valid driver’s license and reliable vehicle
Own a smartphone with the Instacart Shopper app installed
Be able to lift heavy items (up to 40 lbs.)
You can click here to sign up to be an Instacart Shopper.
How does Instacart make money with grocery delivery?
Instacart makes money in a few different ways. They charge customers a delivery fee and a service fee for each order placed.
Usually, the prices of items on Instacart are higher than in-store prices. So, customers are paying a higher price when shopping on Instacart than if they just went to the store themselves.
Additionally, Instcart has partnerships with retailers that offer their services on the platform. So, they charge these companies a fee as well.
How much do Instacart shoppers make?
The amount of money that you can make as an Instacart shopper can widely vary depending on several factors such as location, order volume, tips, and your efficiency of shopping and driving.
Shoppers typically make around $11 to $20 per hour. Keep in mind that as an independent contractor, you may have additional expenses such as gas and vehicle maintenance to account for when calculating your earnings.
Where do Instacart shoppers shop?
There are many different stores that you may shop at as an Instacart shopper. These stores may include major grocery retailers, as well as specialty shops, depending on your area.
Stores where you might shop at through Instacart include Walmart, Walgreens, Aldi, Kroger, Publix, Petco, and more.
Instacart Shopper Requirements and Sign Up
Background Check
To become an Instacart shopper, you first need to pass a background check. The background check for Instacart means that you will need to give them some personal information and consenting to a check before being allowed to be a shopper.
This is so that they can protect Instacart customers, as you will be personally going to people’s homes.
Car and Insurance Requirements
To deliver groceries for Instacart, you will need to have a reliable car and meet any insurance requirements. This is because you will be delivering groceries, of course.
This also means that you will want to maintain your vehicle and make sure that it is in good working condition. After all, you do need to drive and deliver groceries, so you do not want your car breaking down on you.
Also, don’t forget to factor in the expenses that go along with driving, such as gas and regular maintenance, as part of what you are actually earning from Instacart. These expenses can add up quickly.
Cell phone and the Instacart App
To shop for Instacart, you will need a phone so that you can accept orders and see what you are supposed to be shopping for.
You will need a smartphone with either Android or iOS to access the Shopper app (iPhone 5 or Android 4.4 or newer).
You’ll also want to make sure that your phone meets the minimum requirements and has reliable cell service, as the Instacart app is what you need so that you can receive orders, choose your work hours, and more.
Instacart does not provide you a phone, you would be using your own phone.
How To Sign Up As An Instacart Shopper
To become an Instacart Driver/Shopper, you will need to:
Sign up for Instacart here: Go to the Instacart website or download the Shopper app to begin the registration process. You will have to answer some easy questions and confirm your cell phone number.
Submit application: Complete the form with relevant information and submit it for review. A local Instacart team will review your application, and if approved, you’ll receive an email with more instructions.
Onboarding process: Depending on your chosen role, you may be required to attend an in-person onboarding session where you’ll learn about Instacart’s policies and procedures. These are typically around 90 minutes long.
Once you’ve completed these steps, you’ll be ready to start accepting orders and making money as an Instacart shopper.
Earnings and Payments
Pay Structure and Hourly Rate
As an Instacart shopper, your pay varies depending on the type of order and the size of the grocery batch. The company guarantees at least $7 to $10 for each full-service batch, where you pick, load, and deliver the order of groceries. On average, Instacart shoppers can earn between $11 and $20 per hour.
However, the actual hourly rate may fluctuate based on factors such as location and demand.
You can earn more by shopping when it is busiest. This is usually on the weekends and on holidays.
Tipping and Bonuses
In addition to the base pay, you can also earn tips from customers. Instacart allows customers to tip their shoppers, so providing excellent service can result in more generous gratuities.
There are also opportunities to earn additional bonuses through referral programs, promotional periods, and peak hours.
Keep in mind that while tips and bonuses can boost your overall earnings, they may not always be consistent or guaranteed.
Direct Deposit and Debit Card
Instacart shoppers receive payment via direct deposit or the optional Instant Cashout feature, which transfers earnings to a debit card for a $0.50 fee.
You receive payments weekly between Wednesday and Friday for services you provided the week before (from Monday to Sunday).
Shopping and Delivery Process
Grocery Shopping
Once you receive an order through Instacart, you will go to the designated store and find the items on the customer’s shopping list.
This means that you will be personally picking out the fruits and vegetables (please make sure to pick out good ones that are fresh), checking expiration dates on items, and more.
You will be personally going through the store and putting things into a shopping cart or basket.
Also, while shopping for a customer, you may also have to make replacements in case a requested product is not available (this does happen!). If there are any changes, then you will want to contact the customer through the app and confirm any substitutions with them.
Picking Up and Delivering Orders
After completing the in-store shopping, you will need to deliver the groceries to the customer’s doorstep.
Sometimes, the customer does have specific delivery instructions, such as placing the items at the doorstep or handing them over personally.
Pros and Cons of Being an Instacart Shopper
Advantages of being an Instacart shopper
As an Instacart shopper, there are several positives of this side hustle. This may include:
Flexible hours: You can choose when you want to work and decide on your own schedule.
No minimum hours required: You can work as little hours as you want. It’s all up to you.
Quick payment: Instacart pays its shoppers weekly or they also have an instant cash out feature.
Disadvantages of being an Instacart shopper
While there are benefits to being an Instacart shopper, it’s important to consider the negatives such as:
Driver expenses: As an Instacart shopper, you will have expenses such as gas, vehicle maintenance, and insurance. So, if you are making $20 an hour, you will want to make sure that you are still making money after all of the car expenses that you will have.
May need additional insurance: Depending on your car insurance, you may need additional coverage to work as an Instacart shopper.
Orders aren’t guaranteed: Just because you’re signed in and available to work doesn’t guarantee that you’ll receive orders.
Hidden costs: Using your personal vehicle can lead to additional costs, including depreciation and potential repairs. Keep this in mind when calculating your overall earnings from Instacart.
As you can see, there are many pros and cons of becoming an Instacart shopper. Some of these may not mean much to you, whereas others may make or break this side hustle gig for you.
You will want to determine if it is something you want to do as everyone’s situation is different.
Instacart Shopper Alternatives
If you are interested in becoming an Instacart shopper, then there are a few other side hustles that you may be interested in as well.
Some alternatives to Instacart include:
Shipt: This company also allows you to work as a personal shopper and offers flexible hours. Stores on Shipt include Costo, CVS, Harris Teeter, Sephora, Target, Winn Dixie, and more.
UberEats: If you are looking for something where you would not be personally shopping for groceries, then you may be interested in UberEats. With UberEats, you can deliver restaurant meals, groceries, and drinks.
Postmates: Another food delivery service, Postmates gives you the flexibility to deliver not only restaurant meals but also groceries and retail items.
DoorDash: This website focuses on restaurant meal deliveries. So, you would not be shopping for any groceries, just picking up and delivering meals.
As you can see, there are many alternatives to Instacart.
Tips for Increasing Your Earnings and Efficiency
Instacart Shopping Strategies
When working as an Instacart shopper, it’s important to choose batches/orders carefully. This will help to increase the amount you are earning and to make sure that you are picking the most profitable orders.
One factor worth considering is the distance to deliver the order- picking closer orders will save you time and fuel expenses. Another factor is the number of items in the batch. Larger orders may take more time but can result in higher earnings. Also, it’s important to be in an area with high demand to find more batches and have less competition.
Additionally, you should:
Familiarize yourself with the store layout to reduce shopping time.
Group items by category or aisles to complete batches more efficiently.
Time Management
As an Instacart shopper, you have the flexibility to create your own schedule. That means you can choose the most convenient time for you to work.
However, you’ll make more money if you work during peak hours. Typically, the busiest times tend to be weekends and early evenings when people finish work.
Consider the following tips to improve your time management:
Organize your day by taking into account peak hours and the time required to complete each batch.
Choose deliveries that are close together.
Save time by shopping at stores that you frequently visit, so that you know where items are located.
By applying these shopping strategies and time management practices, you can take advantage of the flexibility Instacart offers while maximizing your earnings and efficiency.
Frequently Asked Questions
Does the Instacart shopper pay for the food upfront?
As an Instacart shopper, you will be given an Instacart payment card to pay for the groceries. You do not pay for anything out of your own pocket. The amount on the Instacart card is usually similar to the amount on the order that you are shopping for.
How much can I earn as an Instacart shopper?
Pay is based on a combination of factors such as the number of items, weight, and distance. Instacart guarantees a minimum of $5 for delivery-only batches and $7 for shop and deliver batches.
Average pay is typically between $11-$20 per hour.
How do Instacart Shoppers earn money?
Instacart shoppers earn money through a combination of base pay, tips from customers, and potential bonuses or incentives.
The earnings depend on factors like order size, distance, and the number of batches completed.
As you can see, there are many different things that go into your page for this side gig.
Are there any vehicle requirements to become an Instacart Shopper?
Instacart allows shoppers to use a car or a bicycle for deliveries. Car shoppers must have a valid driver’s license, insurance, and a reliable vehicle.
Bicycles must meet certain requirements for carrying groceries.
What are the pros and cons of working for Instacart?
Pros:
Easy to get started as an Instacart shopper
Flexible schedule and you can choose your own shifts
Opportunity to earn tips
Exercise while working (walking and lifting groceries)
Cons:
Variable income
Wear and tear on your vehicle
Responsibility for gas and other driving expenses
What are common Instacart shoppers complaints? What is the downside of Instacart?
Some common complaints from Instacart shoppers include:
Inconsistent earnings
Difficulty in getting desired working hours or batches
No compensation for vehicle maintenance or gas expenses
What benefits are offered from Instacart?
Instacart shoppers, being independent contractors, do not receive traditional employee benefits like health insurance, paid vacations, or retirement plans.
However, they can benefit from flexible schedules, potential for tips, and control over how much they want to work each day and each week.
Does Instacart pay for gas?
No, Instacart does not cover gas expenses or any other vehicle-related costs for shoppers. These expenses are the responsibility of the Instacart shopper.
Can I choose my working hours as an Instacart Shopper?
Yes, one of the advantages of being an Instacart Shopper is the flexibility to choose your own working hours. You can log in to the app and accept or decline orders based on your availability.
How to make $500 a week with Instacart?
To make $500 a week with Instacart, you may need to strategize by working during peak hours, increasing your speed and efficiency, and delivering to higher-income areas for better tips.
It will require dedication, effective time management, and continued efforts to maintain good customer ratings.
What’s an in-store shopper?
Occasionally, Instacart hires for in-store shoppers. This is a position where you would be shopping for groceries, but not delivering them. The downside of this is that you will not get tips.
Is it better to do Instacart or DoorDash?
Instacart and DoorDash are a little different.
With Instacart, you are shopping for and delivering groceries.
With DoorDash, you are primarily delivering meals from restaurants.
So, the amount of time you spend on each order will be a little different, as is the skillset, and earnings.
Is it better to do Instacart or UberEats?
Similar with DoorDash, choosing between Instacart and UberEats will depend on what you want to do.
While Instacart focuses on groceries, UberEats specializes in restaurant food delivery. Consider pay rates, potential tips, the type of work, and your local market demand when making a decision.
Can I work for other delivery platforms while being an Instacart Shopper?
Yes, you can work for Instacart and other delivery platforms all at the same time. But, you will want to make sure to stay organized.
Is it worth it being a shopper for Instacart?
This is a personal question, as everyone is different. Some people love being an Instacart shopper, whereas for others, it’s not a good fit for them.
The ability to have flexible hours and earning potential can be attractive, but you still need to think about the car costs you will have as you will have to drive in your own vehicle.
Analyze your needs and research other Instacart shopper reviews to determine if it’s a good fit for you.
Instacart Shopper Review Summary
As an Instacart shopper, you can make extra money by delivering groceries.
With flexible work hours and typical average pay around $11 to $20 an hour, Instacart can be a good source of income for you.
Actual earnings can vary due to things such as tips, the number of orders, and the distance traveled for deliveries.
A positive of working as an Instacart shopper is the ability to make your own schedule. You can choose how many hours you want to work each day and each week, and there is no minimum amount of hours that you must work.
But, there are negatives to Instacart as well. As an Instacart shopper, there may be extra costs that you may not have thought of, such as gas and vehicle maintenance costs, and you might need to purchase extra insurance to cover your activities on the platform. These extra car costs can add up quickly if you are not careful.
Navigating the gig economy can be tricky, but Instacart may be a good way to make extra money for your situation.
You can click here to sign up to be an Instacart Shopper.
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